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Because of the limited diversification potential of human capital, managers have an incentive to seek:

A. Higher risk projects because they offer the potential for higher returns (payoffs) for the managers

B. Higher return projects because they are less risky

C. Lower risk projects, because these projects are in the best interest of all stakeholders

D. Lower risk projects, because these projects are in the best interest of stockholders

E. Lower risk projects, because these projects reduce the probability of the firm going bankrupt

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91594860

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