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You observe the volatility of two securities over the past five years using historical returns. Stock A has a higher volatility than Stock B. What
You observe the volatility of two securities over the past five years using historical returns. Stock A has a higher volatility than Stock B. What does this imply about future expected returns? a. Stock A will have a higher expected return than Stock B b. Stock B will have a higher expected return than Stock A c. There is not enough information to decide which firm will have the higher expected return d. Volatility, of any kind, is not useful in determining the expected return of a stock
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