Behavioural Finance

Semester Spring
Level 11
Credit Value 10
Module Co-ordinator Dr Konstantinos Gavriilidis
Contact Hours The module will be delivered by means of Lectures and Seminars.  There will be twelve hours of Lectures and eight hours of Seminars.
Assessment Assessment will comprise a two hour class test (100 per cent of the module grade)  The class test will contain essay-type questions and will enable students to demonstrate their knowledge of both behavioural finance theory and its practical applications.

 

Objectives

The aim is to provide students with an alternative perspective to traditional finance theory based on rational decision-making. Drawing on insights from psychology the module explores the impact of psychological heuristics and biases on investor behaviour and asset pricing.

 

Learning Outcomes

Knowledge and Understanding of:

  1. The deficiencies of modern finance theory.
  2. The reasons for the existence of a variety of stock market anomalies.
  3. The consequences of limits to the arbitrage
 process for financial markets.
  4. The importance of the distinction between risk and uncertainty.
  5. Psychological heuristics and biases in financial decision making such as loss aversion and mental accounting.
  6. The impact of psychological heuristics and biases on investment behavior and asset pricing.
  7. The empirical evidence for a variety of investment strategies based on inefficient markets.
  8. The history and evolution of the field of study of Behavioural Finance.

Generic Skills:

  • methodical working through planning and prioritisation
  • effective listening
  • effective time management 

Cognitive Skills:

  • the ability to analyse information and solve structured problems
  • the ability to identify arguments and think critically

 

Division: Accounting & Finance

© University of Stirling FK9 4LA Scotland UK • Telephone +44 1786 473171 • Scottish Charity No SC011159
Portal Logon