QUESTION TWO (10 Marks) 2.1 Explain why investors should study behavioural finance before considering any major investment? (4) 2.2 Identify the behavioural bias in each of the following options, providing reasons for your answer: 2.2.1 Harry Kane begins a meeting with his financial advisor by outlining his philosophy as shown below: I will direct the purchase of investments, including derivative securities, periodically. These aggressive investments result from personal research and may not prove consistent with my investment policy. I have not kept records on the performance of similar past investments, but I have had some big winners (2) 2.2.2 During the late 1990s, technology stocks were the "glamour stocks", to such an extent that companies like Google and eBay has P/E ratios of 1300 and 3300 respectively. (2) 2.2.3 A gambler wins a very large pot of money playing poker. In the next hand, the gambler bets heavily on a hand that is of only average quality. What bias may have caused this bet? (2)