In perfect markets risk management expenditures aimed at

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In perfect markets, risk management expenditures aimed at reducing a firm's diversifiable risk serve to

A. Market the firm more attractive to shareholders as long as costs of risk management are reasonable

B. Increase the firm's value by lowing its cost of equity

C. Decrease the firm's value whenever the costs of such risk management are positive

D. Has no impact on firm value

Reference no: EM13568661

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