If a security's realized return is negative, the expected return was smaller than the required return.

Name: If a security's realized return is negative, the expected return was smaller than the required return.
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Quizplus · Accepted Answer

If the realized return is negative, it means that the actual return was less than the expected return. Since the required return is the minimum acceptable return, it follows that the expected return must have been smaller than the required return.

If a Security's Realized Return Is Negative, the Expected Return