We can imagine the financial manager doing several things on behalf of the firm's Stockholders. For example, the manager might:

a) Make shareholders as wealthy as possible by investing in real assets.

b) Modify the firm's investment plan to help shareholders achieve a particular time pattern of consumption.

c) Choose high- or low-risk assets to match shareholders' risk preferences.

d) Help balance shareholders' checkbooks.

But in well-functioning capital markets, shareholders will vote for only one of these goals. Which one? Why?