Required:
(a) Discuss whether the analysts following Intel appear to have been influenced by any psychological phenomena, both generally and in their reaction to Intel’s announcement in September 2000.
(b) Discuss whether James Stewart’s assessment of eBay reflects any psychological phenomena.
(c) In what ways are the events described at Intel and eBay similar and in what ways are they different?
(d) With reference to relevant literature and empirical studies, critically evaluate why do investors in one country believe the return will be better and the risk is lower in their own country’s stock market than in other countries’ markets?
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