Your friend, who took finance classes , says that he has seen the stock price of Tesla go up and down like a yo-yo over the past several months. He says "Tesla is a very volatile stock, the return fluctuates a lot. Irrespective of whether the market as a whole is quiet or volatile, there is a lot of volatility in Tesla stock. This makes it very risky, and I know that higher risk means a higher discount rate. So, Tesla's discount rate will be very high."

What should I say that he's wrong?