Stock and bond markets, stock and bond markets:

Stock and bond markets

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stock and bond markets:

offer identical returns in order to compete for the investors' dollars.

would offer identical returns if the respective investments had identical terms to maturity.

offer returns that tend to move up and down together although equity returns are higher because stocks are riskier than bonds.

are independent of each other as to prevailing rates of return.

Reference no: EM131311771

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