Question: 2 . Behavioral Finance Maximum Points: 6 Please identify the cognitive or emotional bias that is demonstrated in each of the two communications below, and

2 .

Behavioral Finance Maximum Points:

6

Please identify the cognitive or emotional bias that is demonstrated in each of the two communications below, and provide a brief explanation. Each answer should be

50

words or less. After reviewing your retirement needs calculation with David and Sofia, and discussing the amount of estimated living expenses they will have in the first year of retirement, Sofia remarks

Wow

,

ll be living like kings!

David asks you to research a particular dog food stock. You ask David why he is interested in investing in that company and he says it is because they are buying up an organic dog food brand, and that the same thing happened with another company a few years back, and their stock price soared afterward.

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