This
discussion question for this module has two parts. Respond to both
parts to receive full credit for this assignment.
Part 1: There is evidence that
small stocks and value stocks perform better over the long term than the market
averages. What are some logical reasons for this phenomenon?
Part 2: There is strong
evidence that many investors suffer from familiarity bias and overconfidence
bias. Can you explain why these biases might exist? Can you think of a
situation in which you might make these mistakes (if you hadn’t learned about
these biases in this module)?
Include some news that is less than a year old that is applicable to this
discussion.
