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    Question

    Which of the following is not a principle of

    finance?
    A Risk–Return Trade-off Correct Answer Incorrect Answer
    B Time Value of Money Correct Answer Incorrect Answer
    C Diversification Correct Answer Incorrect Answer
    D Arbitrary decision-making Correct Answer Incorrect Answer
    E Liquidity vs Profitability Correct Answer Incorrect Answer

    Solution

    Core finance principles include risk–return balance, time value, diversification, and liquidity–profitability trade-off. Arbitrary decisions have no place in finance theory.

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