The study looked at how different levels of investor knowledge about a company's profits can affect stock market volatility. They found that the volatility of stock prices compared to profits goes up as investors know more, but the relationship between investor knowledge and stock return volatility can be tricky. Depending on how risky investors are and other factors, the link between knowledge and stock return volatility can be unpredictable. The researchers used a model to match their findings with real data from the U.S. stock market. When we don't know how much investors know, it's hard to say for sure if the stock market's ups and downs are too extreme.