Firms having a higher expected return have a higher:
A) level of expected risk.
B) dividend yield.
C) market value of equity.
D) degree of certainty concerning their returns.

Name: Firms having a higher expected return have a higher: A) level of expected risk. B) dividend yield. C) market value of equity. D) degree of certainty concerning their returns.
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Question

Quizplus · Accepted Answer

Higher expected returns are typically associated with higher levels of risk, as investors require a risk premium for taking on additional risk.

Firms Having a Higher Expected Return Have a Higher