The following factors might affect stock returns:
A) the business cycle.
B) interest rate fluctuations.
C) inflation rates.
D) all of these.
E) none of these.

Question

Quizplus · Accepted Answer

All of these factors can affect stock returns. The business cycle can impact earnings and investor sentiment, interest rate fluctuations can affect borrowing costs for companies and influence investment decisions, and inflation rates can erode the purchasing power of earnings and dividends. Therefore, market participants consider all these factors while making investment decisions.

The Following Factors Might Affect Stock Returns