(6 marks) You recently got into a debate with a friend over investing strategies. As markets have recently crashed due in part to the coronavirus, your friend sold his exchange traded funds (these are meant to represent the efficient market portfolio for CAPM) and instead bought a few stocks that he believes will outperform the market. He checks his portfolio daily and rebalances every couple of days. a. (2 marks) Explain which behavioral biases your friend is exhibiting (state the bias and explain how he is being affected by it). Your friend refuses to listen to you and keeps his new strategy. A month passes and he notices that his fund has lost a lot of its value. However, he refuses to sell any of his stocks and instead buys more stocks, in particular, the ones being talked about on the news. He believes that as long as his strategy doesn't deviate too much from a 'normal' strategy, he'll be okay. b. (2 marks) Explain the biases in his logic and strategy and how they are affecting him. Another month passes and your friend's fund has continued its decline. He is now very frustrated and is finally starting to question his strategy. He might now be more inclined to listen to you. He is looking into fund managers because he believes they will do a better job managing his money. M Rook Pro purvurur, le Ules Demy talked about on the news. He believes that as long as his strategy doesn't deviate too much from a 'normal' strategy, he'll be okay. b. (2 marks) Explain the biases in his logic and strategy and how they are affecting him. Another month passes and your friend's fund has continued its decline. He is now very frustrated and is finally starting to question his strategy. He might now be more inclined to listen to you. He is looking into fund managers because he believes they will do a better job managing his money. C. (2 marks) Explain to your friend the benefits and drawbacks of fund managers from an investors point of view and recommend if he should use one or not