The Fact That Over the Long Run the Return on Common

Multiple Choice

The fact that over the long run the return on common stocks has been higher than that on long-term U.S. Treasury bonds is partially explained by the fact that:

A) A lot more money is invested in common stocks than U.S. Treasury bonds.
B) There are regulations on the interest rates U.S. Treasury bonds can offer.
C) The risk premium is higher on common stocks.
D) Risk-averse investors buy more common stock.