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The equilibrium solution between a well-diversified investor and an under-diversified entrepreneur assumes Choice 1 of 4:that the entrepreneur behaves opportunistically when receiving funds from the

The equilibrium solution between a well-diversified investor and an under-diversified entrepreneur assumes

Choice 1 of 4:that the entrepreneur behaves opportunistically when receiving funds from the investor

Choice 2 of 4:that without agency conflicts and information asymmetry the investor achieves a zero NPV

Choice 3 of 4:that the investor funds the venture if they achieve a positive NPV

Choice 4 of 4:that an entrepreneurs human capital is irrelevant for the determination of the equilibrium

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