Why does a stockholder prefer a high-volatility project?, Ask an Expert

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Why does a stockholder prefer a high-volatility project? Even though is will maximize the expected value of the company's equity, and therefore increase the value of the stockholder's shares, won't there also be a greater risk of loss on a project that is considered to have a high volatility? Why or why not?

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Accounting Basics, Accounting

Category:- Accounting Basics
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