Purchase of insurancethe main reason that diversified, Ask an Expert

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Purchase of insurance

The main reason that diversified shareholders might NOT want their corporate managers to purchase insurance against firm specific losses is that:

a. they like risk

b. they have already diversified away the risk that is being insured

c. they are risk averse

d. cash flow variability increases their return on investment

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9739763

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