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Explain why market governance works best when the essential attributes of a financial deal are incorporated into the funding cost associate with the risk borne by investors? (typed)

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Market governance works best when the essential attributes of a financial deal are incorporated into the funding cost as, risk borne investor suffers a lot of risk but invests only in the hope of profit. When essential attributes of financial deal are incorporated into finding cost it assures the investors upto a certain degree and motivated him to invest. This helps the market governance because it would get unstable in the absence of investors.

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