appeadusolomon65
contestada

4. Human judgment and experience can play a role in the advent of stock market crash because
O Investors with an experience of financial crises are better at diversifying their portfolios
Investors with an experience of financial crises are better at explolong profit opportunities
Investors with an experience of financial crises are better at staying out of the market in turbulent times.
A lot of people who have lived through financial crises have reported that as a consequence of these crises and
their narratives, their faiths in the market have diminished​

Respuesta :

sebastiansierraocm

Answer:

Investors with an experience of financial crises are better at diversifying their portfolios

Explanation:

When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.

Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.

Otras preguntas