The fact that returns from the stock market are less volatile over long-periods of time suggests that:

Question

Quizplus · Accepted Answer

The lower volatility of returns from the stock market over long periods of time suggests that the market is efficient, meaning that prices reflect all available information and adjust quickly to new information. This reduces the potential for large swings in prices and minimizes risk for investors. It is not necessarily a sign of increased risk aversion, comfort with one's holdings, or more frequent stock market bubbles.

The Fact That Returns from the Stock Market Are Less