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

Question

Quizplus · Accepted Answer

The fact that stock market returns are less volatile over long periods of time suggests that stock markets are efficient, which means they incorporate all available information into stock prices. This would make it more difficult for bubbles to emerge, which would otherwise cause greater volatility in stock returns. The other options are not supported by the evidence provided.

The Fact That Returns from the Stock Market Are Less