We can imagine the financial manager doing several things on behalf of the firms stockholders. But in well-functioning capital markets, shareholders will vote for only one of these goals. Which one?

1- Choose high- or low-risk assets to match shareholders risk preferences.

2- Make shareholders as wealthy as possible by investing in real assets.

3- Modify the firms investment plan to help shareholders achieve a particular time pattern of consumption.

4- Help balance shareholders checkbooks.