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please do all parts in 40 minutes please urgently... I'll give you up thumb definitely a) Briefly discuss what is meant by behavioural finance. [2

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please do all parts in 40 minutes please urgently... I'll give you up thumb definitely

a) Briefly discuss what is meant by behavioural finance. [2 marks] b) You are working in the research department of a major supermarket chain. One of your colleagues has analysed intensively the price of wheat on the market. Wheat has been very cheap for the last three years and your colleague believes that wheat has been underpriced by the market. In a report for the CEO your colleague writes that they are 95% sure that price of wheat will increase in the coming year. The CEO asks you whether it is possible that their advice is biased. Please explain your answer in the context of behavioural finance. [4 marks ] c) Explain in the context of CAPM whether the alpha of wheat is positive or negative. In your answer, please make sure to provide a diagram. [6 marks]

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