Discussion Question
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.
The ProQuest database at the Saint Leo University Library website can be a useful tool for completing this assignment. Click here for instructions on accessing ProQuest.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.