Financial intermediaries provide some or all of the following six economic functions: (1) risk reduction via diversification, (2) lower costs of contracting and processing information, (3) professional portfolio management, (4) liquidity, (5) variety, and (6) a payments mechanism. Describe three of these functions, as provided by mutual funds.

Question

Quizplus · Accepted Answer

The Answer of Financial intermediaries provide some or all of the following six economic functions: (1) risk reduction via diversification, (2) lower costs of contracting and processing information, (3) professional portfolio management, (4) liquidity, (5) variety, and (6) a payments mechanism. Describe three of these functions, as provided by mutual funds.

Financial Intermediaries Provide Some or All of the Following Six