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Please respond to my 2 answers for feedback. Has COVID-19 MadeInvestors More Risk-Averse? Investors have become more cautious into the securities they invest into with

Please respond to my 2 answers for feedback.

Has COVID-19 MadeInvestors More Risk-Averse?

Investors have become more cautious into the securities they invest into with the uncertainty of the stock markets. On March 11th alone, the Dow Jones plunged 5.6% on the World Health Organization's news of a global pandemic [Sels, 2021]. As the world is starting to recover in some places, and news of vaccines is helping, the stock market is starting to rebound and once solid investments that fell are starting to look better for riskier investors. The onset of the 2008 financial crisis and lessons learned from the situations since have helped investors understand how to de-risk their portfolios and diversify. By having central banks keep interest rates low, risk assets are beginning to be more attractive once again. "In a market dominated by risk-averse investors, riskier securities compared to less risky securities must have higher expected returns as estimated by the marginal investor. If this situation does not exist buying, and selling will occur until it does exist" (Brigham & Houston, 2016). People will intrinsically stay away from risk, especially when it's large sums of their money involved to better protect their assets. As we look towards the future, and possibly only dealing with an endemic, the economy will start to rebound in every industry and once destroyed stocks will become money makers for all investors again.

Risk Management Techniques for the Active Trader

With the stock market today recovering from the pandemic, a lot of stocks are trying to make a comeback in the market. For a lot of traders including myself, this is an exciting time to try to invest in companies with the greatest potential to produce revenue. As stock try to rise in the market, investors need to learn how to be able to manage risk and apply different techniques that will allow them to produce the most revenue. These techniques are especially important now because the market is still at a very unpredictable place especially with the pandemic still looming. A few of these techniques that are presented in this article includes planning your trades, setting stop loss points, and being able to calculate your expected returns. These are only a few things in this article that will help investors manage risk with the stock market. With the active trader, they need to plan there trades out. Setting a price point in which they would like to sale there shares whether when it reaches the ceiling price or having a floor price in the case a stock drops below the price point in which you set. This will help to protect any revenue already gained from being lost if the stock price drops below your bottom line. These risk management tools are vital for any active trader, because without having the knowledge of a few of these techniques could be detrimental to the success of your investments. (Kuepper, 2021)

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