Behavioural Finance

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• the traditional finance view and how Behavioural Finance challenges this view
• limits of arbitrage, noise traders, agency theory and their consequences on the Efficient Market Hypothesis
• the behavioural aspects of investors that can be applied to help investors themselves and fund managers better allocate their capital

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• demonstrate competence generally in numerical analysis and problem solving
• communicate ideas orally and/or in a written format

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• demonstrate an understanding of the theoretical concepts of traditional financial theory and how Behavioural Finance challenges this theory
• produce reasoned arguments and reach logical conclusions, and support both by reference to relevant theoretical frameworks
• demonstrate an appreciation of the importance of the psychology of investors

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

In-class activities

• Assessment Type: Formative
• Feedback: Feedback from in-class activities will be provided in the classes and further feedback can be sought from the module leader during their office hours.
• Final Assessment: No
• Group Work: No

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.