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**ANCETPYNCTEXT** · 03-05-2010, 07:59 AM

That wouldn't affect the risk of the stock.

I think this was what the radio guy was talking about. http://books.google.com/books?id=hr1...return&f=false

It still seems kind weird. Shouldn't both shares in the example be priced the same, since they both have the same expected cash flows. Is it efficient to be risk averse?

03-05-2010, 07:59 AM	#4
ANCETPYNCTEXT Join Date Oct 2005 Posts 405 Senior Member	That wouldn't affect the risk of the stock. I think this was what the radio guy was talking about. http://books.google.com/books?id=hr1...return&f=false It still seems kind weird. Shouldn't both shares in the example be priced the same, since they both have the same expected cash flows. Is it efficient to be risk averse?
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