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Value Maximization. Fritz is risk-averse and is content with a relatively low but safe ret...

Value Maximization. Fritz is risk-averse and is content with a relatively low but safe return on his investments. Frieda is risk-tolerant and seeks a very high rate of return on her invested savings. Yet both shareholders will applaud a low-risk capital investment that offers a superior rate of return. Why? What is meant by “superior”? (LO5)

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