Question: Based on concepts we discussed in class, what is an explanation for why stocks are typically expected to earn a higher return than government bonds?

Based on concepts we discussed in class, what is an explanation for why stocks are typically expected to earn a higher return than government bonds?
Question 2 options:
Stocks are less volatile than bonds
Stocks are more risky than bonds
Stocks have about the same risk level as bonds
Stocks have lower betas than bonds

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