ESSENTIALS OF INVESTMENTS SELECT CHAPT
ESSENTIALS OF INVESTMENTS SELECT CHAPT
17th Edition
ISBN: 9781307126228
Author: Bodie
Publisher: MCG/CREATE
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Chapter 21, Problem 19PS
Summary Introduction

To determine:

Another example of a moral hazard problem

Introduction:

Moral hazard is a phenomenon whereby a party to a contract has an incentive to change behavior in a way that makes the contract less attractive to the other party.

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