Most corporations earn returns for their stockholders by acquiring and operating tangible and intangible assets. The relevant risk of each such asset should be measured in terms of its effect on the risk of the firm's stockholders.

Question

Quizplus · Accepted Answer

The statement is true. The risk of each asset should be evaluated in terms of its impact on the overall risk of the firm's stockholders. This involves assessing the level of risk for each asset and how it fits within the company's overall portfolio.

Most Corporations Earn Returns for Their Stockholders by Acquiring and Operating