The possible conflict of interest between stockholders and m

The possible conflict of interest between stockholders and managers is an example of the O nonsystematic risk problem O diversification effect Oasymmetric information problem O agency problem

Solution

The answer is Agency problem

This is because the agency view of the corporation says that the decision right should be entrusted to managers, who are acting for the share holders wealth maximization interest. When the managers have anyother objective other thar the maximization of share holder value the conflict arises