Individuals may find it more advantageous to purchase claims from a financial intermediary rather than directly purchasing claims in capital markets because
I.intermediaries are better diversified than most individuals
II.intermediaries can exploit economies of scale in investing that individual investors cannot
III.intermediated investments usually offer higher rates of return than direct capital market claims

Question

Quizplus · Accepted Answer

Intermediaries are better diversified than most individuals and can exploit economies of scale in investing that individual investors cannot. However, there is no guarantee that intermediated investments usually offer higher rates of return than direct capital market claims.

Individuals May Find It More Advantageous to Purchase Claims from a Financial