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  3. Study Set
    Principles of Managerial Finance
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    Exam 7: Stock Valuation
  5. Question
    If the Expected Return Is Less Than the Required Return
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If the Expected Return Is Less Than the Required Return

Question 108

Question 108

True/False

If the expected return is less than the required return, investors will sell the asset, because it is not expected to earn a return commensurate with its risk.

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