Discussion 5 This discussion question has two parts. Respond to both parts to

Discussion 5 This discussion question has two parts. Respond to both parts to receive full credit for this assignment.  Part 1: There is evidence that small stocks and value stocks perform better over the long term than the market averages. What are some logical reasons for this phenomenon?  Part 2: There is strong evidence that many investors suffer from familiarity bias and overconfidence bias. Can you explain why these biases might exist? Can you think of a situation in which you might make these mistakes? Include some news that is less than a year old that is applicable to this discussion.  Discussion 6 This discussion question has two parts. Respond to both parts to receive full credit for this assignment.  Part 1: Your friend is asking for advice. She is planning to retire in 40 years and wants to know what investments she should choose. She also wants to know if she should use an IRA or 401k or some other sort of retirement vehicle. Please advise her.  Part 2: You have another friend that already has a sizable amount saved for his retirement, but he wants to retire in 10 years. What type of advice would you give him about what type of investment to make and as to whether or not to use a retirement plan?  Include some news or advice from an article that is less than a year old that is applicable to this discussion.