Explore BrainMass
Share

Explore BrainMass

    Purchase of insurance

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    © BrainMass Inc. brainmass.com October 9, 2019, 11:02 pm ad1c9bdddf
    https://brainmass.com/business/business-management/purchase-insurance-242138

    Solution Preview

    The main reason that diversified shareholders might NOT want their corporate managers to purchase insurance against ...

    Solution Summary

    Response provides guidelines relating to purchase of insurance.

    $2.19