Back to Assignment Attempts: Average 15. Risk and return Implications for managers and investors Aali ai Aa The concept of risk and return is subjective for different peopl ell as for corporations. Read and assess the following financial decisions. everything else constant, are the following actions good financial decisions? Base your decisions on the understanding of risk and return, solely from a theoretical finance perspective. Bill is a small-business owner. He has some cash flow and wants to invest in a Good Financial new project. Bill's assistant provides an evaluation and estimates the nominal Decision? returns that Bill would earn if he invests in the project. Bill reads the No eS evaluation and makes the decision based on the real terms after factoring in inflation Good Financial Marcie works for an educational technology firm that recently launched its Decision? No employee stock option plan (Esop). Marcie allocated a her investments in Yes the ESOP. Erin wants to invest in a hedge fund that has had a very strong performance Good Financial track record. The hedge fund has given its investors a return of over 60% for Decision? the past five years. Although Erin is tempted to put her money in the fund she decid to conduct due diligence on the hedge fund assets, she Yes No is aware that past performance is no guarantee of future results Grade It Now Save & Continue