For each of the following statements, state whether it is TRUE or FALSE, fully justifying your answer.

a) Consider the decile of stocks that, on a given day, have high trading volume. An individual is more likely to buy than to sell stocks from this decile.

b) It is possible to explain short-run momentum by assuming some traders erroneously believe in the law of small numbers.

c) A key feature of Prospect Theory is that people do not know probabilities exactly, hence they overestimate small probabilities; this can be modeled by a probability weighting function.