Question $5(1$ point$)$

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

i$)$ 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.

ii$)$ 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 potential stock market outcomes overestimates the probability of stock market crashes$($a $\backslash (10\backslash \%\backslash )$ loss in a day$).$

iii, iiiiii, ivNone of the above

Question $6(1$ point$)$