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Fri, Mar 29, 2024 05:49
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Answer to this week's riddle

Again, the riddle:  

A prominent neuroscientist has what suggestion to reduce financial market fluctuations brought on by irrational exuberance and paranoia?

Answer:   More female traders.

Source: http://www.economist.com/node/21530111
“One way to reduce the financial havoc these hormones might wreak could be for trading desks to hire more women. Women have about 10% as much testosterone as men, making them less prone to irrational exuberance. Competitive situations do not activate women’s cortisol response with such intensity, so market mayhem is less likely to impair their judgment. Call it a hormonal-diversification strategy.”




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