Include some news that is less than a year old that is applicable to this discussion. 



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? 

In answering Part 1, discuss small - value stocks. Then compare small - value stocks to large cap stocks. Discuss why small - value stocks outperform large cap stocks.



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 (if you hadn’t learned about these biases in this module)? 

In answering Part 2, discuss behavioral finance. Discuss why investors act sometimes irrationally.