QUESTION FOUR $[20$ Marks$]$

Part a: $10$ Marks

With the support of at least three empirical evidences, discuss how one's level of integration influence the likelihood of investing in the stock market and the type of stock purchased

Part b: $10$ Marks

Explain how loss aversion can result in investors' willingness to hold on to deteriorating investment positions.

QUESTION FIVE $[20$ Marks$]$

Part a $[6$ Marks$]$

Discuss three ways in which bizarre investments may be explained by behavioural finance.

Part b $[14$ Marks$]$

Briefly explain seven structural factors that may give rise to a speculative bubble.