The market allocates capital to companies based on

Question

Quizplus · Accepted Answer

The market allocates capital based on all of these factors - risk, efficiency, and expected returns. Investors look for companies that can offer them the best risk-adjusted returns, which take into account the company's efficiency and its potential for future growth or profitability. Companies that can demonstrate efficiency and strong growth potential are likely to attract greater investment and hence, greater capital allocation from the market.

The Market Allocates Capital to Companies Based on