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When examining portfolios of assets over the last 100 years, what should we infer from the positive correlation between the average annual return and the
When examining portfolios of assets over the last 100 years, what should we infer from the positive correlation between the average annual return and the variance?
A:Investors prefer stocks with higher variance and bid them up over time
B:Companies which with high returns are more likely to have a price crash in subsequent years
C:Investors appear to pay lower prices for stocks with higher return variance.
D:Companies which grow faster tend to have higher volatility.
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