Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. if i tell you that company a faces a higher failur

If I tell you that Company A faces a higher failure risk and thus higher...

80.2K

Verified Solution

Question

Finance

image

If I tell you that Company A faces a higher failure risk and thus higher variance than Company B stock returns, does the CAPM imply that Company A must earn a higher expected return than Company B? No Yes

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students