Question: . ( 2 points ) What do the underreaction and overreaction mean in the stock markets? 2 . ( 3 points ) What is the

.(2 points) What do the underreaction and overreaction mean in the stock markets?
2.(3 points) What is the conservatism bias? How does it explain the underreaction?
3.(3 points) What is the representativeness bias/heuristic? How does it explain the
overreaction?

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