Question: Which statements below is correct about financial asset returns? a. In each year, the return of small company stocks is higher than that of Treasury

 Which statements below is correct about financial asset returns? a. In

Which statements below is correct about financial asset returns? a. In each year, the return of small company stocks is higher than that of Treasury bills. b. Everyone should hold stocks instead of bonds because in the long run expected returns of stocks are higher. c. In the long run, riskier assets provide higher average returns. d. A higher inflation expectation increases the present value of stocks but decreases the value of bonds

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