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Describe the maximisation of shareholder wealth concept

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Reference no: EM131622141

Short essay of for each of the following questions. For each question, illustrate your answer with an appropriate example.

1. Describe the 'maximisation of shareholder wealth' concept and contrast it with the notion of 'maximisation of profit'.

2. 'Risk aversion implies that only risk-free investments will be undertaken by corporate managers'. Critically evaluate this statement (indicate whether you agree or disagree in your answer).

Reference no: EM131622141

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