less any new investments. 1.4. What is the overall objective of financial statement analysis? A. Evaluating a new investment. B. Examining the firm's financial position and returns in relation to risk. C. Determining how to finance an investment. D. Calculating the WACC. 1.5. How will an investor describe the relationship between risk and return? A. Higher risk results in higher expected return. B. Higher risk results in higher return. C. Lower risk results in higher return. D. Lower risk results in higher expected return. Page 6 of Summativ