Among the six principles of finance, all are included except:
A) All decisions are ultimately financial decisions.
B) Higher returns are expected for taking on more risk
C) Diversification of investments can reduce risk
D) Financial markets are efficient in pricing securities

Question

Quizplus · Accepted Answer

The principle that "all decisions are ultimately financial decisions" is not among the commonly accepted principles of finance. The other options (B, C, D) are well-recognized principles that relate to risk and return, the benefits of diversification, and market efficiency, respectively.

Among the Six Principles of Finance, All Are Included Except