Proper risk-return management means that:

Question

Quizplus · Accepted Answer

Proper risk-return management means finding the appropriate balance between the level of risk and the expected return that is consistent with the objectives of the firm. It is not about taking as few risks as possible or earning the highest return possible. Future profits are not necessarily valued more highly than current profits, as this would depend on the specific goals and circumstances of the firm. Therefore, choice B is the best option as it emphasizes the importance of balancing risk and return in a way that is aligned with the firm's objectives.

Proper Risk-Return Management Means That