Postgraduate Course: Behavioural Finance (CMSE11203)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Course type | Standard |
Availability | Available to all students |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Credits | 15 |
| Home subject area | Common Courses (Management School) |
Other subject area | None |
| Course website |
None |
Taught in Gaelic? | No |
| Course description | This elective course is designed to provide an overview of an exciting new and fast growing area in finance, which takes as its premise that investment decision¿making and investor behaviour are not necessarily driven by ¿rational¿ considerations but by aspects of personal and market psychology. Behavioural finance recognises that our abilities to make complex financial decisions are limited due to the biases and errors of judgement to which all of us are prone. This course introduces cognitive biases, discusses the impact of such biases on the financial decision-making, and explores the behaviour of individual investors, fund managers and corporate managers. |
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | Business School students only unless an arrangement has been made. Please contact the course secretary. |
| Additional Costs | None |
Information for Visiting Students
| Pre-requisites | None |
| Displayed in Visiting Students Prospectus? | No |
Course Delivery Information
|
| Delivery period: 2013/14 Semester 2, Available to all students (SV1)
|
Learn enabled: Yes |
Quota: None |
|
Web Timetable |
Web Timetable |
| Course Start Date |
13/01/2014 |
| Breakdown of Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 20,
Seminar/Tutorial Hours 9,
Summative Assessment Hours 2,
Other Study Hours 116,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
0 )
|
| Additional Notes |
Prep Reading 40 Assignment: 45 Exam Prep 40
|
| Breakdown of Assessment Methods (Further Info) |
Written Exam
60 %,
Coursework
40 %,
Practical Exam
0 %
|
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
|
| Main Exam Diet S2 (April/May) | | 2:00 | |
Summary of Intended Learning Outcomes
On completion of the module, students should:
(a) understand the differences between a behavioural finance perspective and a traditional finance perspective;
(b) understand the cognitive biases and errors of judgment that affect financial decisions;
(c) have developed their understanding of behavioural influences involving individuals' investment decisions;
(d) have developed their understanding of behavioural influences involving corporate (executive) financial decisions;
(e) be up to speed with important developments in this new area and the associated practical insights they provide;
(f) recognise their own decision errors and understand the reasons for these, so they can avoid future decision errors;
(g) understand how, by appreciating the cognitive biases to which they are prone, they can become a better investor or financial manager;
(h) have developed good understanding of the implication of behavioural finance for corporate governance;
(i) have improved their knowledge of "bubbles".
Intellectual Skills and Subject Specific Skills:
On completion of the module, students should:
(a) have developed a critical understanding of the main principles of cognitive psychology as applied in behavioural finance;
(b) be familiarised with the latest developments and issues in behavioural finance.
Cognitive skills and personal development:
On completion of the module, students should:
(a) have developed their ability to understand complex lines of argument and reasoning in behavioural finance;
(b) be able to develop the links between behavioural finance theory and professional practice;
(c) have improved their written skills;
(d) have developed skills in collaboration and teamwork. |
Assessment Information
Group written assignment 40% (made up of group written report 25% and individual essay on the group work 15%)
Final exam 60% |
Special Arrangements
| None |
Additional Information
| Academic description |
Not entered |
| Syllabus |
Not entered |
| Transferable skills |
Not entered |
| Reading list |
Nofsinger, J. (2011) The Psychology of Investing, 4th edition, Prentice Hall, ISBN: 0136117031.
Ackert, L. and Deaves, R. (2010) Behavioural Finance: Psychology, Decision-Making, and Markets, 1st edition, South-Western, ISBN: 0538752866.
Shefrin, H. (2007) Behavioural Corporate Finance, 1st edition, McGraw-Hill, ISBN: 0072848650.
Forbes, W. (2009) Behavioural Finance, 1st edition, John Wiley, ISBN: 9780470028049. |
| Study Abroad |
Not entered |
| Study Pattern |
Not entered |
| Keywords | Not entered |
Contacts
| Course organiser | Ms Yue Liu
Tel: (0131 6)50 4309
Email: Yue.Liu@ed.ac.uk |
Course secretary | Miss Ashley Harper
Tel: (0131 6)51 5671
Email: Ashley.Harper@ed.ac.uk |
|
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