The scandals involving Enron, World Com, Global Crossing and other large firms:
A. have resulted in a cry for less government regulation of public corporations.
B. demonstrate that the government should be responsible for collecting and distributing financial information on firms.
C. is what should have been expected on the part of investors, that is why there is a risk premium.
D. are examples of asymmetric information and have led, at least temporarily, to a less well functioning stock market.
Answer: D
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