Which statement is true?

A.

Taxes are higher on short-term investments than long-term investments.

B.

Short-term investments are less prone to price volatility than long-term investments.

C.

Short-term investments require greater diversification than long-term investments.

D.

Short-term investments incur lower transaction fees than long-term investments.

E.

Short-term investments have a higher inflationary risk than long-term investments.