The extra return that stocks earn over bonds (onaverage) compensates stockholders fora. the greater market risk that stockholding entails.b. the greater firm-specific risk that stockholdingentails.c. the higher taxes levied on stockholders.d. the higher brokerage costs incurred buyingstocks.
The extra return that stocks earn over bonds (onaverage) compensates stockholders fora. the greater market risk that stockholding entails.b. the greater firm-specific risk that stockholdingentails.c. the higher taxes levied on stockholders.d. the higher brokerage costs incurred buyingstocks.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The extra return that stocks earn over bonds (on
average) compensates stockholders for
a. the greater market risk that stockholding entails.
b. the greater firm-specific risk that stockholding
entails.
c. the higher taxes levied on stockholders.
d. the higher brokerage costs incurred buying
stocks.
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