Postgraduate Course: Behavioural Finance (CMSE11203)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | 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. |
| Course description |
Not entered
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | Business School students only unless an arrangement has been made. Please contact the course secretary. |
Course Delivery Information
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| Academic year 2014/15, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 2 |
Timetable |
Timetable |
| 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 )
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| Additional Information (Learning and Teaching) |
Prep Reading 40 Assignment: 45 Exam Prep 40
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| Assessment (Further Info) |
Written Exam
60 %,
Coursework
40 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
Group written assignment 40% (made up of group written report 25% and individual essay on the group work 15%)
Final exam 60% |
| Feedback |
Not entered |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S2 (April/May) | | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- 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.
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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. |
Additional Information
| Graduate Attributes and Skills |
Not entered |
| Keywords | fin-BF |
Contacts
| Course organiser | Ms Yue Liu
Tel: (0131 6)50 4309
Email: Yue.Liu@ed.ac.uk |
Course secretary | Miss Rachel Allan
Tel: (0131 6)51 3757
Email: Rachel.Allan@ed.ac.uk |
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