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Examveda

An estimation by marginal investor, a higher expected return is earned on

A. more risky securities

B. less risky securities

C. less premium

D. high premium

Answer: Option A

Solution(By Examveda Team)

An estimation by marginal investor, a higher expected return is earned on more risky securities. The marginal investor in a firm is the investor who is most likely to be trading at the margin and therefore has the most influence on the pricing of its equity.

This Question Belongs to Commerce >> Financial Management

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