Theoretical and empirical research has shown that the expected return from investing in a firm relates, in part, to the expected profitability of the firm.

Question

Quizplus · Accepted Answer

The expected return from investing in a firm is influenced by various factors such as the expected profitability of the firm, the risk associated with the investment, and market conditions. The theoretical and empirical research has shown that there is a positive relationship between the expected return and the expected profitability of the firm. Therefore, option A is correct.

Theoretical and Empirical Research Has Shown That the Expected Return