If the expected return on stocks is 10 percent, the monetary return from investing in art will be less than 10 percent because there is a fun return to art.

Question

Quizplus · Accepted Answer

The statement is true because investing in art provides not only a monetary return but also a non-financial return in the form of aesthetic enjoyment, cultural appreciation, and personal satisfaction, commonly referred to as the "fun return." Therefore, the total return from investing in art is likely to be lower than the expected return from stocks, which only offer a monetary return.

If the Expected Return on Stocks Is 10 Percent, the Monetary