NO.PZ2015121810000007
问题如下：
A wealthy investor has no other source of income beyond her investments and that income is expected to reliably meet all her needs. Her investment advisor recommends that she tilt her portfolio to cyclical stocks and high-yield bonds. Explain the advisor’s advice in terms of comparative advantage in bearing risk.
选项：
解释：
This wealthy investor has a comparative advantage in bearing business cycle risk compared with the average investor who depends on income from employment. Because the average investor is sensitive to the business cycle and in particular the risk of recession, we would expect there to be a risk premium to hold recession-sensitive securities. Cyclical stocks and high-yield bonds are both very sensitive to the risk of recessions. Because the welfare of the wealthy investor is not affected by recessions, she can tilt her portfolio to include cyclical stocks and high yield bonds to attempt to capture the associated risk premiums.
“A wealthy investor has no other source of income beyond her investments”
