Which three of the following economies of scale enable intermediaries to transform assets effectively?

Question

Quizplus · Accepted Answer

A) Risk spreading: Intermediaries can spread risk by holding a large portfolio of assets, reducing the overall risk of the portfolio.
B) Efficiencies in gathering information: Intermediaries have access to information that may not be available to individual investors. This enables them to make informed decisions and provide better investment services to their clients.
C) Lower transaction costs: Intermediaries can take advantage of economies of scale to reduce transaction costs, resulting in lower expenses for investors. This enables intermediaries to transform assets effectively, as they can allocate more resources to the investment process. 
D) Low customer numbers: This is not an economy of scale that enables intermediaries to transform assets effectively. In fact, having fewer customers may actually make it more difficult for intermediaries to achieve economies of scale, as they may not be able to spread their fixed costs over a large number of clients.

Which Three of the Following Economies of Scale Enable Intermediaries