When the annual rate of return on U.S.Treasury bills is historically high,investors expect the return on the stock market:
A) considerably lower than normal.
B) about average.
C) also to be high.
D) approximately equal to zero.

Question

Quizplus · Accepted Answer

When the return on U.S. Treasury bills is high, it often indicates higher interest rates and inflation expectations, leading investors to expect higher returns from the stock market to compensate for increased risk.

When the Annual Rate of Return on U