Question $12(1$ point$)$

A historic study of financial markets $(1920$ s$-$present$)$ demonatrates that:

Stocks whose price is predominantly driven by their cash cow value have produced lower future returns than stocks whose price is predominantly driven by their NPVGO value.

Although in the very short term stock returns can be negative, there has never been a $20-$year period where their returns have been negative after accounting for fees, taxes, and inflation.

iii$)$ High Shiller PE ratios today have historically been associated with above average future stock market returns over a $10-$year period.

iv$)$ Using a normal distribution to describe polential stock market outcomes overestimates the probability of stock market crashes$($a $10\%$ loss in a dayl.

$,$ iii

iii, iv

None of the above