Which of the following statements is False ? (A) A Finance Manager can take the financial decisions of the firm by considering the return dimension only (B) Usually, as the return from an investment increases, the risk a

CS Executive · Financial and Strategic Management · PYQS · December 2022
Which of the following statements is False ? (A) A Finance Manager can take the financial decisions of the firm by considering the return dimension only (B) Usually, as the return from an investment increases, the risk associated with it also increases, and in his attempt to increase the return, the finance manager will also have to undertake greater degree of risk (C) At the time of taking financial decisions, the finance manager tries to achieve proper balance between consideration of risk and return to maximize the market value of the firm (D) All the above are true
(A) A Finance Manager can take the financial decisions of the firm by considering the return dimension only
(B) Usually, as the return from an investment increases, the risk associated with it also increases, and in his attempt to increase the return, the finance manager will also have to undertake greater degree of risk
(C) At the time of taking financial decisions, the finance manager tries to achieve proper balance between consideration of risk and return to maximize the market value of the firm
(D) All the above are true

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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