Reasons for using RI

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February 24, 2018 at 9:58 pm #438788
humai
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Sir are both of these advantages of RI correct?

1) Different interest rates can be set for investment of different risk
2) RI maximization tends to be congruent with decisions that maximize shareholders wealth
February 25, 2018 at 10:37 am #438842
John Moffat
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Yes, both are correct (although the second is not really fair for F5 because measures of shareholder wealth are really more of a F9 topic).
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