Question: Securities A and B generate the same expected discounted cash-flows but are stochastically independent. Volatility of cash-flows of security A is twice the volatility of

Securities A and B generate the same expected discounted cash-flows but are stochastically independent. Volatility of cash-flows of security A is twice the volatility of security B's cash flows. What does this information imply for the expected returns? Explain carefully. Which role does risk aversion play for your response?

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