Question: what do you think would happen to the expected return on Stocks investors proceeded an increase in the volatility of stock assuming no change in

what do you think would happen to the expected return on Stocks investors proceeded an increase in the volatility of stock assuming no change in taste. That is an unchanged risk aversion, investors perceiving higher higher risk will demand a higher interest premium to hold the same portfolio. they help if we assume that the wrist free rate is unaffected. The increase in the wrist premium would require a blank expected rate of return in the equity market.

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