Investors run the gamut, from fire-and-forget types who buy mutual funds and leave them alone for decades, to fussbudgets who watch their portfolios minute by minute, ready to buy or sell with every up and down.
But is there a golden mean that would allow the investor to act when it will really pay off, while avoiding counterproductive tinkering? Common sense says that this "Goldilocks" zone must exist, but theorists have had a hard time nailing it down, says Wharton finance professor Andrew B. Abel. "It was a mathematical nightmare," he notes.
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