1. Rosie bought 1000 shares of two different stocks at RM30 per share each. Over the next month, one of her share increase to RM50 while the other drops to RM15. She is in need of cash so she decided to sell off one of her stock. Rosie decided to sell her RM50 stock.

Which behavioural finance theory is related to her behaviour? What would happen next?

2. Perry discover the tendency of stocks in plantation sector in Bursa Malaysia to decline on December but rebound on January. He believes he can get abnormal return from this.

What type of anomalies is this?

What would happen next?