Question
The story in the text and discussed in class of the CFO who used shareholder money on a project that had a very small chance
The story in the text and discussed in class of the CFO who used shareholder money on a project that had a very small chance of returning a large sum and a very large chance of returning zero was used to illustrate what course concept?
a. | That despite the teaching of modern portfolio theory, most investors choose to hold one stock portfolios | |
b. | That dividends do not necessarily need to be paid, even for profitable companies | |
c. | That firms with financial leverage can better boost EPS | |
d. | That the risk of a project can change when it is combined with other projects | |
e. | That the capital asset pricing model does not hold in the real world |
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