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:
Core
- Postgraduate Taught Finance with Behavioural Science (N301) - Year 1
- 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
N/A
Optional
- Postgraduate Taught Behavioural and Economic Science (Economics Track) (C8P8) - Year 1
- Postgraduate Taught Economics (L1P6) - Year 1
- Postgraduate Taught Economics and International Financial Economics (L1P7) - Year 1
- Postgraduate Taught Finance and Economics (LN1J) - Year 1
- Postgraduate Taught Finance and Economics (LN1J) - Year 2
- MSc in Finance (N300) - Year 1
- MSc in Finance (N300) - Year 2
- Postgraduate Taught Financial Mathematics (N3G1) - Year 1
- MSc in Accounting and Finance (N4N3) - Year 1
- MSc in Accounting and Finance (N4N3) - Year 2