Which of the following statements is TRUE?
◦ The presence of asymmetric information in financial markets increases the likelihood that these markets are efficient.
◦ Accounting profits are always more important to shareholders than cash flows.
◦ Managers should choose investment projects that maximize shareholder wealth.
◦ The study of finance only benefits students who aspire to careers in business.
◦ Investors should not be compensated with a higher return for owning risky securities since they should know better than to buy stock in a firm that has uncertain prospects.