Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 13

Your best friend comes to you for financial investment advice. She is wondering whether she should invest in (a) a sector of the economy that has been performing extremely well in the last five years relative to historical levels or (b) one that has been performing extremely poorly in the last five years relative to historical levels. What would you advise? How might irrational expectations affect your recommendations?