Since 1955,Canada bond yields and earnings yields on stocks were

Question

Quizplus · Accepted Answer

Canada bond yields and earnings yields on stocks have been positively correlated since 1955. As bond yields increase, it becomes more costly for companies to borrow money, which can negatively impact profits and earnings. As a result, stock prices may decline, causing earnings yields to increase. Therefore, when bond yields increase, earnings yields on stocks also tend to increase in order to compensate investors for the increased risk.

Since 1955,Canada Bond Yields and Earnings Yields on Stocks Were