You can only learn so much from a book
There is a famous behavioural finance test.
Imagine you have to choose between two investments:
Investment A gives you a safe return of $10,000
Investment B has an 80% chance of giving you a return of $12,500 and a 20% chance of a return of $0.
In this case, most investors would choose Investment A because they are risk-averse and the additional gain of $2,…
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