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why are equities volatile

KNOWLEDGE CHECK Why are equities volatile? Due to low levels of borrowing inuens from indoes Due to changing tax rates equity
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Answer #1

Due to the residual nature of earnings

The dividend is the return on equity and the dividend is not mandatory in nature. It's the company's discretion that they declare dividend or not. so the return on equities are not certain and risk is so high. since the return is always changing, the price of equities are so volatile in nature.

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Answer #2
Due to the residual natura of earnings
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