{{ block title }}Welcome to an Experiment in Investment Decision Making!{{ endblock }}
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Description of the decision
There are 4 trading rounds, which follow essentially the same format:
Your current assets are 10.000 ECU (Experimental Currency Units).
Each round, you will be asked to invest an additional 3.000 ECU in one of two assets.
Asset returns are probabilistic, i.e. you cannot be sure how much return an asset yields.
Hint
Keep in mind the financial concept of diversification: If you combine two assets that are not perfectly correlated, part of each asset's risk cancels out and the total portfolio risk is lower.
Thus, the lower the correlation between your current assets and your newly added asset, the more beneficial it is in terms of risk.