Psychology and Financial Markets ACCFIN4063
- Academic Session: 2023-24
- School: Adam Smith Business School
- Credits: 20
- Level: Level 4 (SCQF level 10)
- Typically Offered: Semester 2
- Available to Visiting Students: Yes
This course builds on the material covered in Finance 1, and Finance 2. The Psychology and Financial Markets course goes a step further exploring how behavioural factors influence managers and investor decisions.
10 x 2 hour lectures
1 x 4 hour tutorials
Please refer to MyCampus for timetable.
Behavioural Economics: Theory and Applications (ECON4049)
Intended learning outcomes
Main Assessment In: April/May
Are reassessment opportunities available for all summative assessments? Not applicable
Reassessments are normally available for all courses, except those which contribute to the Honours classification. For non Honours courses, students are offered reassessment in all or any of the components of assessment if the satisfactory (threshold) grade for the overall course is not achieved at the first attempt. This is normally grade D3 for undergraduate students and grade C3 for postgraduate students. Exceptionally it may not be possible to offer reassessment of some coursework items, in which case the mark achieved at the first attempt will be counted towards the final course grade. Any such exceptions for this course are described below.
The aims of this course are:
â¢ to offer students a stimulating insight into the emerging field of behavioural finance and to enhance students' ability to critically interpret the behaviours associated with financial decision-making.
â¢ to deepen and broaden students' conceptual understanding of financial decision-making.
â¢ to encourage students to critically evaluate certain established financial models and understandings in light of emerging behavioural finance research and to analyse the ways in which existing models and understandings in finance might need to change to accommodate the behavioural finance research.
â¢ to develop students' ability to recognise the linkages between theoretical knowledge drawn from research and real practical financial decision making, and build confidence that will facilitate the putting of theoretical behavioural finance knowledge into action in financial decision-making.
Intended Learning Outcomes of Course
By the end of this course students will be able to:
1. Apply expected utility theory and prospect theory when making decisions under uncertainty.
2. Analyse the role played by heuristics, biases, and emotions in decision making.
3. Critically evaluate the implications of heuristics, biases, and emotions in a financial context.
4. Critically appraise the behavioural explanations for market anomalies and puzzles.
5. Critically judge managerial decision making within the context of behavioural corporate finance.
6. Work collaboratively in a group to produce a combined piece of coursework, by liaising with other class members, allocating tasks and co-ordinating group meetings.
Minimum Requirement for Award of Credits