Higher risk tends to result in a higher share price since the stockholder must be compensated forthe greater risk.

Name: Higher risk tends to result in a higher share price since the stockholder must be compensated forthe greater risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Higher risk typically requires a higher potential return to attract investors, but it does not necessarily result in a higher share price. Share prices are influenced by various factors, including company performance, market conditions, and investor sentiment.

Higher Risk Tends to Result in a Higher Share Price