The extra return that stocks earn over bonds (on average) compensates stockholders for a. the greater market

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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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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 26, 2024 03:01 AM

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The extra return that stocks earn over bonds (on average) compensates stockholders for a. the greater market

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The correct answer is a the greater market risk that stockholding entails Heres why Market risk This refers to the possibility that the overall market ...View the full answer

Essentials Of Economics

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