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If managers engage in opportunistic behavior, what effect will it have on investors' wealth?

A) No effect
B) Increase investor wealth
C) Decrease investor wealth
D) Could either increase or decrease investor wealth

User Yorch
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1 Answer

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Final answer:

If managers engage in opportunistic behavior, it could either increase or decrease investor wealth.

Step-by-step explanation:

If managers engage in opportunistic behavior, it could either increase or decrease investor wealth. Opportunistic behavior refer to actions taken by managers to benefit themselves at the expense of the investors or the company. If a manager engages in opportunistic behavior that leads to positive outcomes for the company, such as finding cost-saving strategies or identifying profitable investments, it can increase investor wealth. On the other hand, if the opportunistic behavior results in negative consequences, such as embezzlement or mismanagement, it can decrease investor wealth.

User Daniel Slater
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