Financial managers strategically plan the amount of risk they are willing to take with shareholders' investments to ensure an attractive rate of return. Financial managers refer to this decision as riskreturn tradeoff.

Question

Financial managers strategically plan the amount of risk they are willing to take with shareholders' investments to ensure an attractive rate of return. Financial managers refer to this decision as risk­return tradeoff.

Quizplus · Accepted Answer

Financial managers do consider the risk-return tradeoff while making investment decisions for shareholders to ensure a favorable rate of return.

Financial Managers Strategically Plan the Amount of Risk They Are