Focus on capital requirements to focus on risk management

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Reference no: EM131520988

1) Given an asymmetric information problem, (1) how could a venture capital firm protect its equity investment from it? (2) Describe the problem.

2) The trend in bank supervision has moved away from a focus on capital requirements to a focus on risk management. True/False/Uncertain? Explain.

3) Specialization in lending helps to reduce an asymmetric information problem in lending, (1) describe the problem. (2) What are the advantages/disadvantages of specializing?

Reference no: EM131520988

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