Riskpremium is proportional to the risk an asset is exposed to. Since risk levelcan be measured by volatility, so a very volatile stock must offer a highpremium.请问这表述是对的吗,为什么?
generally speaking, it is a good intuition.
However, it is not that easy to give an exact answer to your question.
Firstly, whether higher risk leads to higher return is uncertain. Secondly,
how to volatility is measured or observed is still controversial. There are many
theoretical arguments as well as empirical evidences in support for both sides.