please write me explained two conclusions for every section of part one: sections a, b, c, d, and e. and explained conclusions for every section of part two: sections a, b, and c:

1.a.)The cognitive limitations of investors are reflective of the behavioral bias which are leading to higher degree of emotional overriding in decision making of investors and they will be trying to makedecision.

There are cognitive limitations, overconfidence strains, and emotions that are encountered by investors and other financial market participantsin their operations and when making investment decisions;

i)Confirmation bias

Confirmation bias is the natural human tendency to seek or emphasize information that confirms an existing conclusion or hypothesis. Confirmation bias is a major reason for investment mistakes as investors are often overconfident because they keep getting data that appears to confirm the decisions they have made. This overconfidence can result in a false sense that nothing is likely to go wrong, which increases the risk of being blindsided when something does go wrong.

ii)Disposition Bias

It refers to when investors sell their winners and hang onto their losers. Investors' thinking is that they want to realize gains quickly. However, when an investment is losing money, they'll hold onto it because they want to get back to even or their initial price. Investors tend to admit they are correct about an investment quickly (when there's a gain). However, investors are reluctant to admit when they made an investment mistake (when there's a loss).

iii)Information bias

It is the tendency to evaluate information even when it is useless in understanding a problem or issue. Investors are bombarded with useless information every day, from financial commentators, newspapers and stockbrokers, and it is difficult to filter through it to focus on information that is relevant. Daily share price or market movements usually contain no information that is relevant to an investor who is concerned about the medium-term prospects for an investment, yet there are entire news shows and financial columns dedicated to evaluating movements in share prices on a moment-by-moment basis.

iv)Loss aversion/endowment effect

Loss aversion is the tendency for people to strongly prefer avoiding losses than obtaining gains. Closely related to loss aversion is the endowment effect, which occurs when people place a higher value on a good that they own than on an identical good that they do not own. The loss aversion or endowment effect can lead to poor and irrational investment decisions, whereby investors refuse to sell loss-making investments in the hope of making their money back. The loss-aversion tendency breaks the measurement of opportunity cost. To be a successful investor over time you must be able to properly measure opportunity cost and not be anchored to past investment decisions due to the inbuilt human tendency to avoid losses.

v)Incentive-caused bias

It is the power that rewards and incentives can have on human behavior, often leading to folly.We evaluate the incentives and rewards systems in place to assess whether or not they are likely to encourage management to make rational long-term decisions.

vi)Neglect of probability

Humans tend to ignore or over- or underestimate probability in decision making. Most people are inclined to oversimplify and assume a single point estimate when making investment decisions. The reality is that the outcome an investor has in mind is their best or most probable estimate.

vii)Anchoring bias

Anchoring bias is the tendency to rely too heavily on, or anchor to, a past reference or one piece of information when making a decision. There have been many academic studies undertaken on the power of anchoring on decision making.

viii)Self-attribution

Self-attribution refers to a tendency to make choices based on a confidence in self-based knowledge. It is usually stems from intrinsic confidence of a particular area. Within this category, individuals tend to rank their knowledge higher than others.

b.) Theoverconfidenceeffect is a well-established bias in which a person's subjective confidence in his or her judgments is reliably greater than the objective accuracy of those judgments, especially when confidence is relatively high.Overconfidence can result in a false sense that nothing is likely to go wrong, which increases the risk of being blindsided when something does go wrong.Overconfidencebias changes theinvestorbehavior while makinginvestment decision.Investoroverestimates their skills, knowledge and undervalues the risk and overestimates their ability to control events.

Acognitive bias isa systematic error in thinking that occurs when people are processing and interpreting information in the world around them andaffectsthedecisionsand judgments that they make. Biasesoften work as rules of thumb that help you make sense of the world and reachdecisionswith relative speed.

Emotionsoccupy a powerful position inmaking investment decisions. It drives human behavior that is consistent with economic predictions whilemakinginvestments. Emotions caneffect not just the nature of thedecision, but the speed at which you make it. Angercanlead to impatience, and rashdecision-making. While if you feel afraid, yourdecisionsmay be clouded by uncertainty, and caution, and it might take you longer to choose.

c.) Emotions has a greater impact on the investor's decisionshence they occupy a powerful position inmaking investment decisions. Intenseemotionscan lead to rashdecisions, and anger and embarrassment maymake youparticularly vulnerable to high-risk, low-payoff choices. Emotions constitute potent, pervasive, predictable, sometimes harmful and sometimes beneficial drivers of decision making.

d) Investors are rational in their investment decisions. There are reasons as to why there are different levels of investors rationality;

i) To find the ideal funding method for a successfulinvestment.

ii) Predictions markets and on results of the investment based on the available information.

iii)To discover the best use and generation for your money.

iv) Investors have different motives and objectives for investing.

v)It depends on the age of the investors.

vi)Investors' plan for the future.

vii)Risktolerance levels are determined by the investors rationality.

e)Rational investors are either people who are well educated with the stock markets,rather than the irrational investor is someone who is either overconfident when they are investing or panics at the first sign of any significant news.

Rational investors are the best at exploiting market inefficiencies. First, that when rational investors receive new information, they update their beliefs correctly. Second, rational investors then make choices that arenormatively acceptable. They don't get caught up in sudden market movements and follow the herd in terms of whether to buy or sell a particular share. They take time to consider the evidence at hand and work out whether the market is either right or wrong. Rationalinvestors don'trush; they take timeto consider if themarket is right or wrong.

Explanation:

2. a)The concepts of "cognition" and "emotion" are, after all, simply abstractions for two aspects of one brain in the service of action.Emotion hasa substantial influence on thecognitiveprocesses in humans, including perception, attention, learning, memory, reasoning, and problem solving.Emotion hasa particularly strong influence on attention, especially modulating the selectivity of attention as well as motivating action and behavior.

The distinction between the 'emotional' and the 'cognitive' brain is fuzzy and context-dependent. Indeed, there is compelling evidence that brain territories and psychological processes commonly associated with cognition, such as the dorsolateral prefrontal cortex and working memory, play a central role in emotion. Furthermore, putatively emotional and cognitive regions influence one another via a complex web of connections in ways that jointly contribute to adaptive and maladaptive behavior. This work demonstrates that emotion and cognition are deeply interwoven in the fabric of the brain, suggesting that widely held beliefs about the key constituents of 'the emotional brain' and 'the cognitive brain' are fundamentally flawed.

Two information-processing systems determine the humanemotionalresponse: the affective andcognitiveprocessing systems. Positiveaffecthas the potential to improve creative thinking, while negativeaffectnarrows thinking and has the potential to adverselyaffectperformance on simple tasks.Emotions are the product of changes in the affective system brought about by sensory information stimulation.

b)Decision-makers whose emotions appear to be in balance perform the best: Balanced emotionsmay provide a way for coding and compacting experience, enabling fast response selection. This may point to why expert's "gut" leveldecisionshave high accuracy rates.Finding a goodbalancebetween rational andemotionalsides is the key to making better decisions. At the same time, thisbalanceresults from life experience and a lot of past mistakes.Emotionsare possible signals from the subconscious that provide information about what we really choose. They're part of the mechanism of reasoning and inform even our most logicaldecisions. Emotionsare appraisals of situations that drive survival and wellbeing. If a message doesn't make us feel something, we are unlikely to act on it. They're part of the mechanism of reasoning and inform even our most logicaldecisions. So we need to think ofemotionsas guidelines for everydecision, without which there would be no consumer action.

c)Risk is the situation under which the decision outcomes and their probabilities of occurrences are known to the decision-maker, and uncertainty is the situation under which such information is not available to the decision-maker.Thefirststep todealingwithuncertaintyis to accept that we can't control everything.There arestrategies todeal with risk and uncertainty, which pull together insights from many different fields of research and cast them into a common setting;Benchmark Strategy, Financial Hedging Strategy, Flexible Strategy and Operational Hedging Strategy.