Behavioural Finance
| Code | School | Level | Credits | Semesters |
| BUSI4616 | Business | 4 | 10 | Spring UK |
- Code
- BUSI4616
- School
- Business
- Level
- 4
- Credits
- 10
- Semesters
- Spring UK
Summary
The module will provide an introduction to the field of behavioural finance. In recent decades, the standard finance theory which is based on the Efficient Market Hypothesis and the rational choice model has been challenged. Behavioural finance challenges these traditional theories and presents an alternative. The behavioural finance approach is based on the ideas and findings from psychology and neuroeconomics and is applicable to a wide range of contexts such as investing, retirement saving behaviour and corporate finance.
Target Students
Available to MSc Finance and Investment and MSc Financial Technology and MSc Exchange students.
Classes
- One 2-hour lecture each week for 11 weeks
This module is taught through a series of lectures.
Assessment
- 100% Coursework: 2,000 words.
Assessed by end of spring semester
Educational Aims
Critically reflect on the standard finance theory.Analyse the competing paradigms of the Efficient Market Hypothesis and Behavioural Finance.Explain the differences among a range of systematic biases in the decision-making of investors and link these to underlying psychological processes.Demonstrate that such biases give rise to anomalies in the asset price formation process and how investment strategies can be designed to exploit the anomalies.Learning Outcomes
Knowledge and understanding:
This module develops a knowledge and understanding of:
Markets:
- Development and operation of markets for resources, goods, and services.
Finance:
- Understanding the sources, uses, and management of finance.
Communications:
- Comprehension and use of relevant communications in business and management.
- Utilisation of digital tools for effective communication.
Business Innovation:
- Fostering creativity, intrapreneurial, and entrepreneurial behaviour.
- Enterprise development and the management and exploitation of intellectual property.
Intellectual Skills:
This module develops:
- This module will help students to think critically and challenge the (strong) assumptions, that are mostly in the realm of rationality. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately.
- Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills.
Professional Practical Skills:
This module develops:
- The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of qualitative data, synthesis and reporting.
Transferable (key) Skills:
This module develops:
- Effective communication: networking, listening, oral and written communication of complex ideas and arguments, using a range of media, including the preparation of business reports.
- High personal effectiveness: critical self-awareness, self-reflection and self-management, time management, conflict resolution, displaying commercial acumen, the ability to continue to learn through reflection on practice and experience.