Take a position on the given statement: The stand-alone risk of an individual corporate project might be quite high. Though, the project's true risk might be much lower when viewed in the context of its effect on stockholders' risk." Give two illustrations that support your response. Find out two critical ways in which anchoring bias and herding behavior contribute to market bubbles. Give examples to support your response.
From the e-Activity, find out whether stock prices are influenced more by long-term or short-term performance. Give one example of the effect which supports your claim. From the scenario, value a share of TFC's stock using a growth model method, and compare that value to the present trading price of a share of TFC. Find out whether the stock is undervalued or overvalued. Give a rationale for your response.