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Separating the functions of principals and agents is likely to result in:A. immobility of financial capital.B. diversification of investment risk.C. reduction in agency costs.D. better goal congruence.
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Separating the functions of principals and agents is likely to result in:A. immobility of financial capital.B. diversification of investment risk.C. reduction in agency costs.D. better goal congruence.E. information symmetry.

User Lama
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B. Diversification of investment risk

In investing, the principals are the ones who want to invest and the agents are the people (brokers, etc) who take action on their behalf.

User Benqus
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