Describe an investment strategy that guarantees that you will not lose money to the informed traders and explain why it works
Provide an 800-1000 word count APA style Case Study. You know that there are informed traders in the stock market, but you are uninformed. Describe an investment strategy that guarantees that you will not lose money to the informed traders and explain why it works. What are the only conditions under which the market portfolio might not be an efficient portfolio? Explain what the following sentence means: The market portfolio is a fence that protects the sheep from the wolves, but nothing can protect the sheep from themselves. You are trading in a market in which you know there are a few highly skilled traders who are better informed than you are. There are no transaction costs. Each day you randomly choose five stocks to buy and five stocks to sell (by, perhaps, throwing darts at a dartboard). a. Over the long run will your strategy outperform, underperform, or have the same return as a buy and hold strategy of investing in the market portfolio? b. Would your answer to part (a) change if all traders in the market were equally well informed and were equally skilled? ? Include at least four references (two outside sources in addition to at least one of the articles and your textbook). ? Refer to rubric for grading criteria. ? Length: 800-1000 words excluding the cover page and reference pages, formatted in APA style. ? Cover Page Containing: Title of Paper, Your Name, Course Number and Name, Professors Name and Date. ? Introductory Paragraph: Setting forth a clear statement of your thesis. ? Conclusion: A concise statement that reaffirms your thesis. ? References: At least four quoted references. ? Documentation: All sources must be documented on a separate reference page, using APA format. Keim, D. B. (2006). Financial Market Anomalies. https://finance.wharton.upenn.edu/