Draw the mechanism of the following reaction: 
Definitions:
Moral Hazard
A situation where one party in a transaction has the opportunity to take risks because the costs that those risks entail will not be borne by that party.
Portfolio Risk
The variability of returns from a portfolio of investments.
Utility Function
A mathematical representation that ranks preferences or satisfaction levels individuals derive from consuming goods and services.
Risk Averse
The tendency of individuals or entities to prefer certainty over uncertainty, often choosing safer options over riskier ones to minimize potential losses.
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