“If you have two assets with the same per-share price, and asset A’s value per share has a higher variance than asset B’s value per share, then asset A’s per-share value must have a higher expectation than asset B’s per-share value.”
I guess I was using “cost” to mean “price” and “return” to mean “discounted value or earnings or profit”.
Hm, I think all I meant was:
“If you have two assets with the same per-share price, and asset A’s value per share has a higher variance than asset B’s value per share, then asset A’s per-share value must have a higher expectation than asset B’s per-share value.”
I guess I was using “cost” to mean “price” and “return” to mean “discounted value or earnings or profit”.