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Question 4 ____________ have infinite upside potential and finite downside risk which provides them with the incentive to push managers to take increase the risk

Question 4

____________ have infinite upside potential and finite downside risk which provides them with the incentive to push managers to take increase the risk of the firm. This creates ___________ for the firm.

Stockholders; agency costs

Stockholders; positive externalities

Debtholders; agency costs

Creditors; positive externalities

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