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Finance for managers module 4 Discussion

Finance for managers module 4 Discussion

Q Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risk with those funds. What do you think are the ethical limits that managers should observe when taking risk with other people's money?

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Risk can be regarded as a chief factor while investment is made. Concern is there in the investors regarding associated risks with investments of theirs. The investors, in general, are risk averse. Risk averse indicates that risks are not willing to be taken by the investors. Thus, certain points must be considered by the managers while risks are taken with money of the investors.