How might irrational expectations affect reccomendations

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Your best friend comes to you for financial 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 historic levels. or (b) one that has been performing extremely poorly in the last five years relative to historic levels. What would you advise? How might irrational expectations affect your reccomendations?

Reference no: EM131173982

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