The Idea That Investors in a Common Stock May Expect

Multiple Choice

The idea that investors in a common stock may expect a lower total return if they purchase a stock with limited price volatility rather than one with high price volatility suggests that:

A) investors are irrational.
B) there is a relationship between risk and return.
C) real rates of return will be lower during periods of price stability.
D) stocks should be avoided when inflation is low.