(a) A rational investor is proposed with a trading strategy promising excess (abnormal) return of 2% by going short in markets. What should be the investor's concerns/enquiries regarding this opportunity. Explain your answers briefly. (b) (i) What determines the value of voting rights? Explain the key ingredients for the voting rights to be valued and priced in the securities. (ii) Briefly describe the methods of measuring the value of shareholder voting rights in stocks. (c) Why might a classical expected utility model find it difficult to explain the phenomenon that the same individual is willing to purchase a lottery ticket as well as an insurance. What element from prospect theory can help explain this phenomenon? Explain your answer. (d) One of the most commonly observed anomalies regarding investors' trading behaviour is the disposition effect. How can disposition effect potentially be explained by gambler's fallacy as well as prospect theory? (a) A rational investor is proposed with a trading strategy promising excess (abnormal) return of 2% by going short in markets. What should be the investor's concerns/enquiries regarding this opportunity. Explain your answers briefly. (b) (i) What determines the value of voting rights? Explain the key ingredients for the voting rights to be valued and priced in the securities. (ii) Briefly describe the methods of measuring the value of shareholder voting rights in stocks. (c) Why might a classical expected utility model find it difficult to explain the phenomenon that the same individual is willing to purchase a lottery ticket as well as an insurance. What element from prospect theory can help explain this phenomenon? Explain your answer. (d) One of the most commonly observed anomalies regarding investors' trading behaviour is the disposition effect. How can disposition effect potentially be explained by gambler's fallacy as well as prospect theory