Question: 1. Firms often involve themselves in projects that do not result directly in profits. For example, Apple donated $50 million to Stanford University hospitals and

1. Firms often involve themselves in projects that do not result directly in profits. For example, Apple donated $50 million to Stanford University hospitals and another $50 million to the African aid organization, a charity fighting against aids. Do these projects contradict the goal of maximization of shareholder wealth? Why or why not? (2 pts)

2. What is the relationship between financial decision-making and risk and return? Would all financial managers view risk-return trade-offs similarly?

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