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IB9Y2 - Behavioural Finance

  • Module code: IB9Y2
  • Module name: Behavioural Finance
  • Department: Warwick Business School
  • Credit: 15

Content and teaching | Assessment | Availability

Module content and teaching

Principal aims

To provide students with advanced knowledge of: i) basic tools of prospect theory; ii) the limits to arbitrage; iii) and the range of so called empirical anomalies observed in financial markets.

Principal learning outcomes

Subject knowledge/Key Skills: Recognise the value of alternative paradigms based on psychological and social forces for decision making in finance –Prospect Theory; Comprehensively understand the importance of the distinction between risk and uncertainty. Cognitive Skills: Recognise and interpret so called anomalies in asset pricing; Comprehensively understand the limitations of arbitrage as a force for bringing about efficient pricing; Appreciate the implications of heterogeneity in financial markets.Subject specific/Professional Skills: Evaluate evidence for pricing anomalies Build models that incorporate behavioural characteristics.

Timetabled teaching activities

Total contact hours: 30 hrs. Lectures (over duration of course): 10 x 2 hour lectures. Seminars (over duration of course): 10 x 1 hour seminars. Module duration (weeks, if applicable): 10 week.

Departmental link

Module assessment

Assessment group Assessment name Percentage
15 CATS (Module code: IB9Y2-15)
D1 (Assessed/examined work) Individual Written Project 20%
  2 hour examination (April) 80%

Module availability

This module is available on the following courses:

  • Postgraduate Taught Finance with Behavioural Science (N301) - Year 2
  • Postgraduate Behavioural Finance (N304) - Year 1
  • Postgraduate Behavioural Finance (N304) - Year 2
  • Postgraduate Behavioural Finance (N304) - Year 3
  • Postgraduate Behavioural Finance (N304) - Year 4
Optional Core


  • Postgraduate Taught Finance and Economics (LN1J) - Year 2
  • MSc in Finance (N300) - Year 2
  • Postgraduate Taught Financial Mathematics (N3G1) - Year 1
  • MSc in Accounting and Finance (N4N3) - Year 2