Discuss the trade-off between risk and reward

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Reference no: EM131992566

1. What is the assumed objective in a Corporation? Briefly explain in no more than 150 words why this objective is necessary and why it is appropriate.

2. When compared with other investments, stocks have a higher rate of return over a long period of time. Discuss the trade-off between risk and reward. Discuss the benefits of asset allocation.

3. What is the firm’s Weighted cost of capital (WACC) and how is WACC used in the firm ?

Reference no: EM131992566

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