Financial intermediaries exist because small investors cannot efficiently _________.

Question

Quizplus · Accepted Answer

All of the answer choices provide reasons why financial intermediaries exist. Small investors often lack the resources and expertise to effectively diversify their portfolios, gather and analyze information, and monitor their investments on a continuous basis. Through financial intermediaries, such as mutual funds, exchange-traded funds (ETFs), and investment advisers, small investors are able to access pre-diversified portfolios and professional management services.

Financial Intermediaries Exist Because Small Investors Cannot Efficiently _________