​To keep employees from shirking,invest in greater monitoring

A) if monitoring is inexpensive relative to its benefits
B) especially when monitoring is not very efficient
C) when employees respond well to incentive contracts
D) when incentives solve both moral hazard and adverse selection problems with employees

The stock price of a gold-mining firm drops when it is discovered the firm's chairman has overstated minable gold reserves. This is an example of a (n) ______________ risk factor.

A) Systematic.
B) Non-diversifiable.
C) Unsystematic.
D) Market.
E) Anticipated.