FIN30190 Behavioural Finance

Academic Year 2020/2021

Behavioural Finance applies the theoretical and experimental methodologies and results of the cognitive sciences to questions concerning the ways in which individuals actually make financial decisions, in contrast to the traditional idealised economic models of choice behaviour. It also considers the impact of various individual behavioural biases, feelings, and social forces on aggregate market behaviour, addressing issues such as market efficiency and financial crises.

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Curricular information is subject to change

Learning Outcomes:

On completing this module, you will be able to:
Contrast traditional and behavioural finance perspectives on investor decision making and asset pricing.
Discuss commonly recognised behavioural biases and their implications for investment decision making.
Discuss common problems in the real-world portfolio formation.
Evaluate how behavioural biases and social forces affect aggregate market behaviour and market efficiency.

Indicative Module Content:

1. Expected utility theory
2. Market efficiency and challenges
3. Prospect theory
4. Framing effect
5. Mental accounting and disposition effect
6. Representativeness and familiarity bias
7. Overconfidence
8. Portfolio formation
9. Emotion, investor sentiment, and bubbles
10. Social interaction and social forces
11. Self-control, and retirement saving

Student Effort Hours: 
Student Effort Type Hours
Lectures

24
Specified Learning Activities

40
Autonomous Student Learning

50
Total

114
Approaches to Teaching and Learning:
Lectures
Online questionnaire 
Requirements, Exclusions and Recommendations
Learning Recommendations:

Introduction to Finance
Principles of Finance
Portfolio Management and Investments


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Continuous Assessment: Class engagement Throughout the Trimester n/a Graded No

10
Essay: Individual essay assignment (word count: 3500 +/- 10%) Coursework (End of Trimester) n/a Graded No

70
Multiple Choice Questionnaire: Online MCQ exam Week 8 n/a Standard conversion grade scale 40% No

20

Carry forward of passed components
Yes
 
Resit In Terminal Exam
Spring No
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Not yet recorded.