[SOLVED] The Principal-Agency
July 17th, 2022
(i) Briefly explain the principal-agency problem and can you propose one potential solution to reduce costs associated with this problem? (10 marks)(ii) Specify two typical types of behavioural biases when people make financial decisions. Do you think that the behaviour of buying lottery tickets is consistent with the theory of rational expectations? Explain your answer. (10 marks)
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