If a firm's stockholders are risk averse,the firm can make its stockholders better off by earning the highest possible returns on its investments.

Name: If a firm's stockholders are risk averse,the firm can make its stockholders better off by earning the highest possible returns on its investments.
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Question

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Risk-averse stockholders prefer a balance between risk and return, not just the highest possible returns, as higher returns often come with higher risk.

If a Firm's Stockholders Are Risk Averse,the Firm Can Make