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What is the role of capital market institutions... - SS2 Economics Functions of Capital Market Institutions Question

What is the role of capital market institutions in managing risk?

A

Providing risk management tools such as derivatives

B

Pricing securities

C

Facilitating capital raising

D

None of the above

correct option: a

(Capital market institutions provide various risk management tools, such as derivatives, that help investors to manage their exposure to different types of risks)

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