{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T20:07:25-04:00", "answer_date": "2024-06-06 20:07:25", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2388170", "url": "\/study-help\/questions\/2-a-historic-study-of-financial-markets-1920spresent-demonstrates-that-2388170", "question_creation_date_js": "2024-06-06T20:07:25-04:00", "question_creation_date": "Jun 06, 2024 08:07 PM", "meta_title": "[Solved] 2. A historic study of financial markets | SolutionInn", "meta_description": "Answer of - 2. A historic study of financial markets (1920's-present) demonstrates that: i) Stocks whose price is predominantly dr | SolutionInn", "meta_keywords": "2,historic,study,financial,markets,1920,s-present,demonstrates,stocks,price,predominantly,driven", "question_title_h1": "2. 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", "question_title": "2. A historic study of financial markets (1920's-present) demonstrates that: i) Stocks", "question_title_for_js_snippet": "2 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 10 loss in a day) a) i b) ii, iii c) iii, iv d) None of the above", "question_description": "\"image
\"image<\/div><\/div><\/div> 2. 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 10% loss in a day). a) i b) ii, iii c) iii, iv d) None of the above", "transcribed_text": "", "related_book": { "title": "The Company Valuation Playbook Invest With Confidence", "isbn": "1838470816, 978-1838470814", "edition": "1st Edition", "authors": "Charles Sunnucks", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2024\/01\/659e8d7741ff1_719659e8d773d380.jpg", "uri": "\/textbooks\/the-company-valuation-playbook-invest-with-confidence-1st-edition-978-1838470814-187563", "see_more_uri": "" }, "free_related_book": { "isbn": "0784414858", "uri": "\/textbooks\/seismic-evaluation-and-retrofit-of-existing-buildings-1st-edition-978-0784414859-368649", "name": "Seismic Evaluation And Retrofit Of Existing Buildings", "edition": "1st Edition" }, "question_posted": "2024-06-06 20:07:25", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/sunto-scientific-manufactures-gps-devices-for-a-chain-of-retail", "description": "Sunto Scientific manufactures GPS devices for a chain of retail stores. 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