In an efficient market, knowledge that changes your expected value of the stock is probably already priced in, but you can still capture the gains due to volatility.
I’m not certain I understand this bullet point. Can you explain what you mean?
Rephrase attempt: If you were to buy and hold a company’s stock, and you don’t expect to know better than the market, then your anticipated gains over time are independent of what you think the company’s underlying value will do (since the market has already priced that in). But you should still anticipate gains over time due to volatility’s effect on pricing.
I’m not certain I understand this bullet point. Can you explain what you mean?
[Fixed.]
Typo: “volatility goes up” → “volatility goes down”Fixed.
Rephrase attempt: If you were to buy and hold a company’s stock, and you don’t expect to know better than the market, then your anticipated gains over time are independent of what you think the company’s underlying value will do (since the market has already priced that in). But you should still anticipate gains over time due to volatility’s effect on pricing.
Yes. Your understanding is in line with the idea of risk-adjustment.