Question: What is risk aversion? Why would this affect the fair return? Evaluate this statement: Firm A will decrease in value because they invested too much

What is risk aversion? Why would this affect the fair return?

Evaluate this statement: "Firm A will decrease in value because they invested too much of this year's cash flow into building a new factory."

Why is a dollar now worth more than a dollar later?

What is risk aversion? Why would this affect the fair return?

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