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A firm is currently employing an aggressive working capital policy with regard to the level of current assets it maintains (relatively low levels of current

A firm is currently employing an "aggressive" working capital policy with regard to the level of current assets it maintains (relatively low levels of current assets for each possible level of output). The firm has decided to switch to a more "conservative" working capital policy. What effect will this decision probably have on the firm's profitability and risk?

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