What is one of the most important lessons from capital market history?

Question

Quizplus · Accepted Answer

The most important lesson from capital market history is that there is a positive relationship between risk and return, meaning that higher returns come with higher levels of risk. This is seen in the long-term performance of asset classes such as stocks, which have historically provided higher returns than less risky assets like bonds or T-bills. This lesson is important because it helps investors understand the trade-offs between risk and return and make informed investment decisions.

What Is One of the Most Important Lessons from Capital