Retained earnings are further investments in the firm by the firms shareholders. How should managers invest retained earnings in the interest of the firms shareholders.

	A.	They should place most of the retained earnings in cash as a precautionary balance to reduce risk.
	B.	They should invest the funds in financial assets such as stocks and bonds.
	C.	They should invest in real assets that increase the size and diversity of the firms productive activities.
	D.	They should invest in real assets earning higher returns than the returns available to their shareholders in the financial market on comparable investments.