Question: About risk return, which statement is NOT TRUE? Firm-level risk, asset-specific risk and unique risk are synonyms to unsystematic risk. Higher total risk is compensated
About risk return, which statement is NOT TRUE? Firm-level risk, asset-specific risk and unique risk are synonyms to unsystematic risk. Higher total risk is compensated with higher expected (average) return. Systematic risk can be measured by either Beta or standard deviation. A company's cost of equity is higher than the cost of debt. The discount rate used in DDM is higher than treasury spot rate
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