The following factors might affect stock returns:
A)the business cycle.
B)interest rate fluctuations.
C)inflation rates.
D)all of the above.
E)none of the above.

Question

Quizplus · Accepted Answer

All of the above factors can affect stock returns. The business cycle can impact sales and profits of companies, which in turn affects stock prices. Interest rate fluctuations affect borrowing costs and investment decisions of companies, which can impact stock prices. Inflation rates affect consumer purchasing power and can impact company profits and stock prices.

The Following Factors Might Affect Stock Returns