That could force managers to sell at bad times, or prompt capital gains distributions, which could lower returns.

With its current system of controls on both bank deposit and loan rates, China's financial sector policy is designed to channel low-cost loans to SOEs, by lowering returns to Chinese depositors.

MOREOVER, a belief that each new round of hotels must be more spectacular than the last means higher construction costs, lowering potential returns.

"Very high overhang lowers returns; very low overhang hurts returns," said Ira T. Kay, global practice director of executive compensation consulting at Watson Wyatt.

And the recession has lowered returns on university endowments.

The high prices they paid have lowered returns on commercial real estate - the cash flow from the property divided by the price paid - by one to two percentage points, to as little as 5 percent a year, experts say.

But because that would lower returns, merger experts consider it unlikely.

Losing MIC status - failing to keep within the Income Tax Act rules would cause the MIC to have its income taxed before being distributed to shareholders and would lower returns considerably.

And during a rising market, lower risk leads to lower returns.

Second, if the effect is real, why don't investors take advantage of the predictable higher returns and buy stocks before elections that Democrats are likely to win, in that way pushing stock prices up and lowering returns?