It isn't a trick question. But it is a question that corporate managers must answer to try to generate the most shareholder value through the deployment of excess capital. Great capital allocators generate excess returns for their investors because they can identify opportunities to deploy cash from their existing businesses into investments and strategies that are ultimately worth more than the cash used.
They understand that the market environment demands flexible and opportunistic approaches to investment opportunities. They have the discipline to retain or return excess capital when the market requires prudence, and they avoid expenditures on unproductive or risky projects that may destroy value. In essence, they can evaluate the value of a dollar spent on a variety of capital allocation alternatives.