QUESTIUN UNE:

Write shert notes on the following as used in Behovioural Finance

i$)$ Anchoring

ii$)$ Hindright bias

iii$)$ Narrow fluminy

iv$)$ Familiarily

Qucstion Two:

a$)$ Analyze the differences bin behovioural Fimance & traditional finance interms of

their ascumplions about inveitor behavior $(10$ Marks$)$

b$)$ Analyte the differences btu behavioural finance o traditional finance interms of

their implications for financial market avalyris and investment itrategies. $($is maiks$)$

Qucsitow $$ inere

i$)$ Briefly explain what an informational efficient capital market is $(5$ marke$)$

ii$)$ Whith reason explain the apprepiate investment strategy for a perfeclly market efficient

market. $(5$ murks$).$

in$)$ Tanuary effect anomally contradiets the efficent market hypothelis since the firet five

days of Tunuary, stock returns, especially for small firms, are significantly higher

than they are in the rest of the year. Provide reasons fo juitify the argument.

Quesilon foue:

Go Markf$)$

a$)$ Identify several ways to make belles decisions about retirement $(8$ morks$)$

b$)$ Jacob$-$Luwson i Hershey $(2005)$ explore the influence of three psychologieal

characteristics on retirement saviry bihavior. From analysis they revealed that

each.