The effect of longer investment time horizons on portfolio performance is: a widening dispersion between the best and the worst portfolios a tendency of all portfolios to move towards the efficient frontier a greater advantage to active managers to outperform (compared to shorter time periods) an increase in volatility due to longer exposure to uncertain market changes The "free lunch" that derives from a well-constructed protocol, according to modern portfolio theory, is: higher correlation of returns reduced risk of loss in value diversification effects lower fees and expenses The curve shown here, showing a mix of intermediate term Treasurys and Intermediate term Corporate bonds supports the conclusion that: these two asset classes produce significant diversification benefits these two asset classes show returns that are highly correlated these two asset classes are designed to track each other