I don't undersant this :
"the returns of value stocks may be higher because of the inherently higher risk in buying value stocks compared to growth stocks. This value premium suggests a higher long-term return to make up for low returns when the market turns south."
Isn't it growth stock that...
Can someone explains how increase in firm volatility makes it more likely that SD will be paid off and thus increasing its value?
Also, how senior debt falls in value when firm volatility increases?
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