Jennifer and Dave Edgemont live in the Portland, OR. They have been renting an apartment for 5years and believe that the COVID-19 may offer an opportunity for them to finally buy a home. Theyhave engaged you as financial adviser. You hold a Zoom meeting with Jennifer and Dave andhighlight the following three statements made by Dave in the meeting:

1.We have been using selected Internet sites to research the local housing market and believewith prices low and five-year prospects still good, that now is the best time to buy a house. (5points

2."We do not want to sell any securities that we currently own for a price less than we paid forthem. (5 points)

3. l own company stock under our firms employee stock purchase plan. I will not sell any of mycompany stock to finance the house. I have worked there for 7 years, know the company well.and believe it has excellent future growth prospect. (5 points

For each of these three statements separately: a)ldentify the behavioral factor that you believeunderlies Daves opinion and b)briefly explain how that underlying behavioral factor is affecting Dave's decision-making