Question: Most investors expect the same cash flows (on average) from Companies X and Y. They are reasonably sure that Company Xs cash flows will be

Most investors expect the same cash flows (on average) from Companies X and Y. They are reasonably sure that Company Xs cash flows will be very close to their expected value. However, Company Ys cash flows may be much higher or much lower than their expected value. All other things being equal, which stock should have the higher price?

	a.	Company Y
	b.	Company X
	c.	Both should be about the same

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