Suppose that the standard deviation of the returns on the shares of share at two different companies
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that the standard deviation of the returns on the shares of share at two different companies is exactly the same. Does this mean that the required rate of return will be the same for these two shares? How might the required rate of return on the share of a third company be greater than the required rates of return on the shares of the first two companies even if the standard deviation of the returns of the third company's share is lower?
Posted Date: