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  3. 2. current asset investment policies on the surfac

2. Current asset investment policies On the surface, it seems that a firm would want...

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Accounting

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2. Current asset investment policies On the surface, it seems that a firm would want to hold high levels of current assets to ensure its liquidity and its ability to meet all of its short-term obligations. However, current assets are not very productive and generate very low returns when held. Therefore, a firm must strike a balance and hold those types and quantity of current assets that work best for it. In the following table, identify which current asset investment policy is most likely to work best for each firm

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