When Considering the Risk of Receiving Cash Flows, Financial Managers

Multiple Choice

When considering the risk of receiving cash flows, financial managers must be aware that:

A) investors want higher returns for perceived greater risk.
B) investors want a lower valued firm to discourage future investors which might dilute their existing control.
C) investors expect dividends and capital gains regardless of the risks associated with achieving them.
D) investors always want lower returns so that the risk is minimized.