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1. Which of the following is consistent with the firm's primary goal?

A Pursuing policies that may increase the value of the stock price for the next quarter, but will result in a stagnating/declining stock price over the next three years

B Pursuing policies that increase the value of the firm's stock price over the long-run

C Pursuing policies to maximize the firm's revenues

D Pursuing policies designed to minimize risk exposure of the firm

2. According to risk aversion, investors will always choose the investment alternative that has the lowest level of risk. True False

Financial Management, Finance

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