Question

Why are “new wave” of finance experts perceived to be so risk adverse?

Why are “new wave” of finance experts perceived to be so risk adverse?

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Answer #1

New wave of finance experts are generally considered risk averse because finance experts are exposed to various kinds of frauds and insider trading company can do and these financial experts also known various methods of window dressing through which a company can manipulate its profit and they are highly sceptical about the financial reporting and financial performance of the company.

Risk averse financial experts are always investing in diversified amount of portfolios and they do not want to take much risk because they want to secure their job of earning an ubiform rate of return for various industries and they are maintaining the consistent rate of return in order to help the investor with arriving at constant rate of return even though those rate of return are comparatively lower.

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