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2. (a) Outline the behavioural reasons why individuals display the disposition effect. (25 Mark (b) Outline modern portfolio theory and discuss whether it accurately describes

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2. (a) Outline the behavioural reasons why individuals display the disposition effect. (25 Mark (b) Outline modern portfolio theory and discuss whether it accurately describes how individuals approach asset allocation decisions. (25 Mark (c) Describe behavioural portfolio theory and explain the 5 factors which influence how portfolios are constructed under this theory. (50 Mark (Total 100 Mark

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