When inflation is expected to be low,the risk premium on common stocks is expected to be low.

Name: When inflation is expected to be low,the risk premium on common stocks is expected to be low.
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Question

Quizplus · Accepted Answer

When inflation is expected to be low, it is generally seen as a positive economic environment, which can lead to increased investor confidence and less uncertainty. This can result in stock prices being less volatile and the risk premium on common stocks being lower.

When Inflation Is Expected to Be Low,the Risk Premium on Common