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Which of the Following Statements Is True

Question 23

Multiple Choice

Which of the following statements is true?


A) The presence of asymmetric information in financial markets increases the likelihood that these markets are efficient.
B) Accounting profits are always more important to shareholders than cash flows.
C) Managers should choose investment projects that maximize shareholder wealth.
D) The study of finance only benefits students who aspire to careers in business.
E) Investors should not be compensated with a higher return for owning risky securities since they should know better than to buy stock in a firm that has uncertain prospects.

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