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greyfrost greyfrost
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A month ago
Why do shareholders have a greater preference for risk than managers?

▸ Managers do not like risk because it hurts the value of the company.

▸ Because they are investing in the stock market, shareholders must naturally prefer taking more risk than managers.

▸ Shareholders can diversify risk by holding many securities, while a manager's career is tied up with the firm.

▸ Shareholders are always richer than managers, and can afford to take more risk.
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Corporate Finance

Corporate Finance


Edition: 5th
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mossaddsmossadds
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A month ago
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greyfrost Author
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A month ago
Brilliant ツ
SupremeDJ
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Yesterday
this is exactly what I needed
lubennick
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2 hours ago
Thank you, thank you, thank you!
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