Explain why an employee who cares only about expected return and volatility will likely underweight the amount

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Explain why an employee who cares only about expected return and volatility will likely underweight the amount of money he invests in his own company's stock relative to an investor who does not work for his company?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Corporate Finance

ISBN: 978-0134083278

4th edition

Authors: Jonathan Berk, Peter DeMarzo

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