Question: If an event-driven portfolio is expected to generate annualised returns of approximately 8%, whereas the overall market (a well-diversified equity portfolio) is expected to return
If an event-driven portfolio is expected to generate annualised returns of approximately 8%, whereas the overall market (a well-diversified equity portfolio) is expected to return 10%, each over a 15-year period, explain why investors might still prefer to invest in the event-driven portfolio.
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