Why might a manager accept a high-variance, low-value project instead of a low-variance, high-value project?

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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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Question Posted: May 28, 2012 03:14 AM

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Why might a manager accept a high-variance, low-value project instead of a low-variance, high-value project?

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Shareholders only gain in good states of the world and if the variance of the firm is high...View the full answer

International Financial Management

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