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An estimation by marginal investor a higher expected return is earned...

This question belongs to Commerce Financial Management
Financial Management
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An estimation by marginal investor, a higher expected return is earned on

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Correct Answer: Option A
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.
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