Why do shareholders have a greater preference for risk than managers?
A) Shareholders are always richer than managers, and can afford to take more risk.
B) Shareholders can diversify risk by holding many securities, while a manager's career is tied up with the firm.
C) Because they are investing in the stock market, shareholders must naturally prefer taking more risk than managers.
D) Managers do not like risk because it hurts the value of the company.
Correct Answer:
Verified
Q36: Which of the following is true?
A)Managers can
Q37: Which of the following is/are considered a
Q38: Of the following list, which represents a
Q39: Johan, a corporate manager, often takes significant
Q40: Which one of the following is NOT
Q42: Which one of the following is NOT
Q43: Which of the following is NOT a
Q44: Ten years ago a company spent $10
Q45: Capital budgeting refers to
A)the decision to raise
Q46: The primary objective of the financial manager
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents