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Question
Stocks appear to present risk, yet many people have substantial parts of their wealth invested in them. This behavior could be explained by:A. people are irrational in their investment behavior, only focusing on positive outcomes.
B. people are not very risk-averse and do not require a risk premium for stocks.
C. investing in stocks over the long run is not as risky as short-term holdings of stocks.
D. people are not efficient users of information.
Answer
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