Final answer:
An investment yielding less than the risk-free rate can be acceptable when the risk-free rate is negative, as conserving the principal might be preferable to negative returns on risk-free assets.
Step-by-step explanation:
It is expected for investments to yield a return that is higher than the risk-free rate, which is often represented by the yield on government securities. However, there might be an exception when the risk-free rate is negative. This can occur in certain economic environments when central banks set negative interest rates to stimulate spending rather than saving. In such a scenario, it is acceptable if an investment like Converse Athletics is expected to yield less than the risk-free rate because even preserving the principal would be preferable to losing value through negative returns on risk-free investments.