If the Expected Return Is Less Than the Required Return

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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Definitions:

Importing

The process of bringing goods or services into a country from abroad for sale.

Uncertainty Avoidance

A cultural dimension describing the extent to which societies tolerate ambiguity and uncertainty, influencing people's behavior and attitudes towards risk and change.

Long-Term Orientation

A cultural value dimension that emphasizes the importance of future rewards over immediate outcomes.

Individualism

A theory in social science that prioritizes individual liberty over control by the state or the collective.