If a stock has an expected return lower than the risk-free, Financial Management

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If a stock has an expected return lower than the risk-free

Consider the following statement:

If a stock has an expected return lower than the risk-free rate, no one will buy the stock as part of their portfolio because people demand a premium for holding risk.

In at most 35 words, explain why this statement is incorrect.

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Financial Management: If a stock has an expected return lower than the risk-free

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Financial Management: If a stock has an expected return lower than the risk-free

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