Behavioral Finance - Reading 10: Portfolios, Pyramids, Emo represents, structured, following, black, white

mayanfang1

Q1. If investors form their portfolios based on fear and hope, which of the following best represents the resulting structure of their portfolios? Their portfolios will be structured:

A)   as concentric circles

B)   according to modern portfolio theory.

C)     as pyramids.

mayanfang1

答案和详解如下：

Q1. If investors form their portfolios based on fear and hope, which of the following best represents the resulting structure of their portfolios? Their portfolios will be structured:

A)   as concentric circles

B)   according to modern portfolio theory.

C)     as pyramids.

Correct answer is C)

If investors form their portfolios based on fear and hope, their portfolios will be structured as pyramids with the bottom layer invested in less risky assets to fund necessities. Once necessities are funded, higher levels of the pyramid are dedicated towards riskier investments.

miguelliu

 thx

pundit

a

zhouyp1982

 r

gracecfa

v

delta_leaf

 thx

szg333

f

dandinghe4748

ok

aleckkwong

c