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Which of the Following Statements Is True

Question 71

Multiple Choice

Which of the following statements is true?


A) Because expected returns on stocks exceeds expected returns on bonds, stocks should actually outperform bonds in any given year.
B) Because expected returns on stocks exceeds expected returns on bonds, it is more reasonable to expect that stocks will outperform bonds in any given year.
C) Expected return is the return one will actually receive.
D) Both (a) and (c)
E) All of the above statements are true.

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