market risk & overall risk

问题如下：

If two equity issues have the same market risk but the first issue has higher leverage, the second issue has greater liquidity. Which issue tends to have a higher required return:

选项：

First issue.

Second issue.

They have the same required return.

解释：

A is correct.

考点：Cost of equity

解析：A是正确的。在其他条件相同的情况下，第二只股票的流动性更大，其投资者的要求回报率往往低于第一只股票。而第一只股票杠杆比率更高，流动性更低，说明投资者所承担的风险更大，因此所要求的回报率也会更大。