The Performance of Idiosyncratic Volatility in Different Mispricing

The research on risk and return has always been a key research issue in the capital market. With the reform of China's capital market system, the test of the financial theory of the global market is an important step. When studying risks and returns, traditional finance theories draw the conclusion that the higher the risk, the higher the return. In fact, the company's idiosyncratic risk cannot be diversified by the portfolio, Stocks are susceptible to the company's idiosyncratic risks and are negatively related to idiosyncratic risks. We will verify the return performance of idiosyncratic volatility in stocks