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FIN30190

Academic Year 2024/2025

Behavioural Finance (FIN30190)

Subject:
Finance
College:
Business
School:
Business
Level:
3 (Degree)
Credits:
5
Module Coordinator:
Professor Valerio Poti
Trimester:
Spring
Mode of Delivery:
On Campus
Internship Module:
No
How will I be graded?
Letter grades

Curricular information is subject to change.

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.

About this Module

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
Tutorial

12
Specified Learning Activities

30
Autonomous Student Learning

50
Total

116

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 Invalid Option
Description Timing Component Scale Must Pass Component % of Final Grade In Module Component Repeat Offered
Exam (In-person): Standard end-of-semester exam with a mix of MCQ and open-ended questions. End of trimester
Duration:
1 hr(s)
 Graded No
75
 No
Group Work Assignment: Standard group work assignment (report + presentation) on one or more of the topics of the course. Details will be provided in due course during the semester. Week 9, Week 10, Week 11 Graded No
25
 No

Carry forward of passed components Invalid Option
Yes
 

Resit In Terminal Exam
Autumn 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.

Main reference/textbook: Ackert, L. and Deaves, R. (2010) Behavioral Finance: Psychology, Decision-Making, and Markets. Mason: Cengage Learning.
Other readings will be assigned during the course.

Name Role
Mr Yuting Chen Lecturer / Co-Lecturer

Timetabling information is displayed only for guidance purposes, relates to the current Academic Year only and is subject to change.
Spring Lecture Offering 1 Week(s) - 20, 21, 23, 24, 25, 26, 29, 31, 32, 33 Mon 11:00 - 12:50
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