ES52055: Behavioural finance
[Page last updated: 14 August 2024]
| Academic Year: | 2024/25 |
| Owning Department/School: | Department of Economics |
| Credits: | 5 [equivalent to 10 CATS credits] |
| Notional Study Hours: | 100 |
| Level: | Masters UG & PG (FHEQ level 7) |
| Period: |
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| Assessment Summary: | EXCB 100% |
| Assessment Detail: |
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| Supplementary Assessment: |
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| Requisites: | |
| Learning Outcomes: |
Assesses presence of market anomalies;
Evaluate the impact of heuristics and behavioural biases on financial decision making;
Be able to differentiate, and to critically assess the differences, between classical finance and behavioural finance;
Be able to formulate and solve complex problems related to behavioural finance.
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| Synopsis: | Explore this sub-field of finance and analyse how various psychological traits affect individuals actions as investors/participants in financial markets.
You'll enhance your understanding of behavioural finance and its psychological foundations, gaining an understanding of how:
- behavioural finance grew as a criticism to traditional/classical finance
- behavioural theories attempt to explain stock market puzzles and phenomena that are difficult to reconcile with classical finance |
| Content: | Decision theory and prospect theory, behavioural biases and heuristics and their implications for financial decision making. Stock market puzzles and anomalies such as the equity premium puzzle. Behavioural explanations of anomalies/puzzles.
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| Course availability: |
ES52055 is Optional on the following courses:Department of Economics
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Notes:
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