Question: Why do stocks with high standard deviation tend to earn low returns in the future? because investors do not bury stocks with high standard deviation.
Why do stocks with high standard deviation tend to earn low returns in the future?
because investors do not bury stocks with high standard deviation.
because high standard deviation attracts short sellers to sell short the stock.
because high standard deviation prevents short sellers from selling short and it takes time for bad information to be priced into the stock price.
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