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Outline the moral hazard problem

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Reference no: EM133110208

Needing a bit of help on these 3 questions

A) Briefly outline the moral hazard problem as it affects financial contracts.

B) Compare the moral hazard problem in equity and debt contracts and explain why moral hazard is generally lower for debt contracts.

C) Outline the Diamond model of delegated monitoring.

Reference no: EM133110208

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