$2$ Firms A and B are involved in a lawsuit. Suppose that investors expect that there is a $50\%$ chance that the judge will rule in favor of Firm A $($in which case Firm B will have to pay Firm A $$50$ million$),$ and a $50\%$ chance that the judge will rule in favor of Firm B $($in which case there will be no payments required by either party$).$ The judge$$s decision becomes publicly available on March $9$ in the morning. assume that A$$s and B$$s returns on March $9$ are $5\%$ and $0\%,$ respectively, but that the true changes in equity value of the two firms as a result of the lawsuit outcome are $3\%$ and $-2\%,$ respectively. For each firm$$s incorrect stock price adjustment, propose one behavioral bias that could be responsible for it