Which of the following is true of the investment function of finance?
A)The investment function focuses on socially responsible actions taken by corporations.
B)The investment function focuses on the values, risks, and returns associated with financial assets such as stocks and bonds.
C)The investment function focuses on the optimal mix of securities based on the environment-friendly behavior of the corporations.
D)The investment function focuses on regulations applicable to a public corporation.
E)The investment function focuses on additional information about the procedures used to construct and report financial statements.

Question

Quizplus · Accepted Answer

The investment function of finance is concerned with the values, risks, and returns associated with financial assets such as stocks and bonds, and the optimal mix of such assets for a particular investor or portfolio. Socially responsible actions taken by corporations may be considered in the investment decision-making process, but it is not the primary focus of the investment function. The investment function is also not focused on regulations, construction and reporting of financial statements, or environment-friendly behavior, as these are more relevant to other functions or aspects of finance.

Which of the Following Is True of the Investment Function