Question
Suppose Stock A and Stock B have the same risk. Suppose Stock A has a higher expected return than Stock B. Which of the following
Suppose Stock A and Stock B have the same risk. Suppose Stock A has a higher expected return than Stock B. Which of the following is most accurate?
Investors would invest in Stock B since is has a lower return; this will push the price of Stock B down.
Investors would invest in Stock A since it has a higher return; this will push the price of Stock A down.
Investors would invest in Stock A since it has a higher return; this will push the price of Stock A up.
Investors would invest in stock B since it has a lower return; this will push the price of Stock B up.
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