List the answers of Q6, thanks

5. a) Discuss why a stock market could have a low PE when an economy experiences high inflation. (6.5 marks) How do the empirical findings of momentum by Jegadeesh and Titman (1993) support the use of technical analysis? (6 marks) 6. Discuss how the prospect theory is used to explain behavioral biases. (12.5 marks) Formula: Lognormal distribution: If X is lognormally distributed with mean u and variance o2, then E(X) = ell+o2/2 var(x) = (eg? 1)e2u+o2