What does asset-liability management aim to optimize?

Asset-liability management (ALM) is primarily focused on optimizing the relationship between a company's assets and liabilities to ensure financial stability and performance. The fundamental goal of ALM is to balance the risks and opportunities presented by both sides of the balance sheet. This involves managing the maturity, interest rate, and liquidity risks that can affect a firm's financial health.

By optimizing this balance, ALM helps organizations achieve a stable cash flow, meet regulatory requirements, and maintain sufficient liquidity, all while maximizing returns on assets. This balance is crucial for financial institutions, in particular, as they must ensure that they have enough assets to cover their liabilities at all times while also making efficient use of their resources.

The other choices, while important in their own contexts, do not directly encapsulate the central aim of asset-liability management. For instance, cash flow from operations is a consequence of optimized asset-liability management but not its primary objective. Similarly, investment strategies and market share may be influenced by how well the assets and liabilities are managed but are not the core focus of ALM. Thus, the correct answer reflects the primary purpose of asset-liability management in ensuring a harmonious relationship between what a company owns and what it owes.