Why don't all investors hold Avis Budget Group's stock rather than Hormel's stock?
1) They would, if the numbers in the table were reliable. The problem is that they are just estimates, so investors cannot rely on them.
2) Investors make mistakes, nobody should hold Hormel.
3) Investors care about other things besides return, for example, the company's profits.
4) Hormel's stock has less market risk, so investors don't need as high an expected return to hold it.



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