What do you think would happen to the expected return on stocks if investors perceived higher volatility

Question:

What do you think would happen to the expected return on stocks if investors perceived higher volatility in the equity market? Relate your answer to Equation.

E(rp) y* Ασ ||

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...