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When deciding where to invest your money, you weigh the potential return against the risk. Money market accounts offer minimal risk but modest returns, while corporate stocks typically produce much higher returns at the cost of greater risk. Corporations considering major capital outlays essentially weigh the same factors, except for one caveat: low expected returns are rarely tolerated, because they act as a drag on the company´s earnings and growth.
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18-11-2013, 09:57 AM #1
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