Why are people risk-averse

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Why are people risk-averse? Use your answer to throw light on the way in which intermediaries can persuade savers to lend their money indirectly to them for a lower average rate of return than they could obtain on their own. How does the degree of competition among intermediaries affect the gap between the return a saver might make on her own and the return she can obtain from an intermediary.

Reference no: EM131003016

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