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Economists believe that participating in the stock market is a good thing since (1) holding a diversified portfolio diminishes risk (2) stocks exhibit superior returns
Economists believe that participating in the stock market is a good thing since (1) holding a diversified portfolio diminishes risk (2) stocks exhibit superior returns compared to other asset classes after-adjusting for risk. However, the participation rate in the stock market is only 20-30%. Given 2 reasons why this is the case? (you can also cite behavioral reasons)
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