DISCUSSION.

The article discusses the report by A. A. Robichek and S. C. Myers, "Optimal Financing Decisions," which makes the point that financial decisions made by a firm under uncertainty can be very unsatisfactory, and which offers some innovations that can reduce risk. These include giving the investor more than one utility function, and offering information to the investor about returns over time that may reduce the risk of investing. The author points out the difference between investment rules governing management and the market.