The following figures come from the paper "All that glitters: The effect of attention and news on the buying behavior of individual and institutional investors" by Barber and Odean (RFS, 2008). The figures display the net buying conditional on previous day's return differ between individuals investors (Panel A) and institutional investors (Panel B). Q1.PNG (a) Briefly explain why the pattern for retail investors is U-shaped. (6 points) (b) Briefly explain why we do not observe a similar U-shaped pattern for institutional investors. What drives the different patterns for different institutional investors? (6 points)