The idea that investors in common stock may expect a lower total return when prices are relatively stable suggests that:
A)Investors are irrational
B)Risk premiums decline with inflation
C)Real rates of return will be lower during periods of price stability
D)Stocks should be avoided when inflation is low

Question

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The Answer of The idea that investors in common stock may expect a lower total return when prices are relatively stable suggests that:
A)Investors are irrational
B)Risk premiums decline with inflation
C)Real rates of return will be lower during periods of price stability
D)Stocks should be avoided when inflation is low

The Idea That Investors in Common Stock May Expect a Lower