For each of the following statements, state whether it is TRUE or FALSE, fully justifying your answer. a) Consider the decile of stocks that, on a given day, have high trading volume. An individual is more likely to buy than to sell stocks from this decile. b) It is possible to explain short-run momentum by assuming some traders erroneously believe in the “law of small numbers”. c) A key feature of Prospect Theory is that people do not know probabilities exactly, hence they overestimate small probabilities; this can be modeled by a probability weighting

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Answer A Consider the decile of stocks that on a given day have high trading volume An individual is ... View the full answer