a) Investors may have behavioural biases or imperfections in accessing new information rationally. State whether there is any bias or imperfections for each of the following case. If so, name the term of the bias or imperfections. (Explanation is not required). ai) Over 80% youngsters think that their finance knowledge is better than the average regardless of whether they have taken any finance course or not. (2 marks) aii) Judy has shorted 300 shares of BEF Corporation. The share price keeps on increasing after she has shorted the shares; though most analytical reports mentioned that the share price would tend to increase, Judy just focuses on other analytical reports which discussed potential gain about short sales of the stock. (2 marks) aiii) An investor has purchased a growth stock five years ago; unfortunately, the share price decreases thereafter. The investor refuses to admit that he has made any poor investment decision. To avoid feeling regrets, the investor holds the stock too long and wishes the loss can be recovered. (2 marks) b) The cash flow from assets (CFFA) for firm A is increased from $100,000 to $300,000. The chief financial officer (CFO) of firm A believes that some investors would buy the shares of firm A if the financial report mentioned that the CFFA is increased by 200%, but those investors would not buy the shares if the report only mentioned that the CFFA is increased from $100,000 to $300,000 (without mentioning the percentage change). Briefly explain with not more than 60 words why the CFO may have such belief.