Behavioural Finance

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• forge a link between academic research and investment practice.
• critically evaluate complex research findings.

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• understand the limitations of normative financial theory;
• understand the layman’s view of the relationship between risk and expected return;
• understand some of the common pitfalls that may hinder effective financial decision-making;
• construct a viable analytical framework for choosing between investment opportunities;

Knowledge and Understanding

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

• how behavioural biases affect decision making involving risk;
• the implications of limits to arbitrage for financial markets;
• the core tenets of Behavioural Finance and how they compare to the key principles of mainstream finance;

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: Formative feedback will be provided to the students through several activities (quizzes, team exercises, case studies with empirical analysis, reading, games, group competition, role-playing games, discussion of academic papers). All these learning activities stimulate the active learning experience of the students and provide them with different and deep formative feedback. Formative feedback is provided in oral and written form (solutions of exercises, quiz, and answer to theoretical questions). This allows me to enhance the understanding of the students and to effectively align the teaching activities to LOs. I provide formative feedback to students during each class.
• 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.