For each of the following scenario, name the relevant theory and gives prediction on what would happen to the investor according to the theory. a) Jessica found an article while scrolling on her Facebook about a potential investment opportunity from a newly introduced artificial intelligence-based mutual fund. The article claims that the investment will present a very good opportunity for beginner in investment. She decided to straight away invest her money into the investment as she believes she already have enough information about the product.

b) Shahrudin is one of the applicant for the Initial Public Offering (IPO) of GearUp Holding, a company involved in the industry of heavy machine equipment. His interest is based on the facts that in the last five years, every IPO by the firms in the same sector were underprice by at least 8%. Related theory: What would happen next?