Is art a rational investment

Abstract

This directed research examines through literature and academic reviews the investment opportunity presented by art considering the characteristics and specificities of the art market. The aim is to understand who are the actors involved in the art market, what they are looking for and what they are offering. I will also consider the basic principles of finance that allow to learn about the profitability of an investment, its returns, its risks ,and its volatility to determine its performance by comparing it to other conventional financial instruments. In addition, I will analyse the potential opportunities for portfolio diversification.