ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title Behavioural Finance
Code ECON321
Coordinator Dr V Andreoni
Economics
Valeria.Andreoni@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 6 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ECON112 STATISTICS FOR ECONOMICS AND BUSINESS; ECON112 STATISTICS FOR ECONOMICS AND BUSINESS 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24

12

        36
Timetable (if known) 120 mins X 1 totaling 24
 
60 mins X 1 totaling 12
 
         
Private Study 114
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 1: Examination Assessment Type: Unseen Examination, Managed by SAS Duration: 2 hours Weighting: 70% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL Penalty Appl  2 hours    70       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 2: Individual Report Assessment Type: Coursework Size: 2000 words Weighting: 30% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL Penalty Applies Anonymous Asse  -2000 words    30       

Aims

Provide students with knowledge and understanding of theoretical and empirical limitations of and challenges to the efficient markets hypothesis;
Present the psychological foundations of Behavioural Finance and how they impact upon investors’ rationality and arbitrage;
Provide the opportunity for students to critically evaluate behaviourally induced market puzzles;
Present key behavioural trading patterns from a theoretical perspective and outline their empirical design.


Learning Outcomes

(LO1) Students will be able to understand the key concepts and issues in behavioural finance.

(LO2) Students will be able to possess a good command of the key theoretical and empirical literature in behavioural finance.

(LO3) Students will be able to develop an ability to analyse main implications (theoretical and empirical) of behavioural finance findings.

(LO4) Students will be able to construct and present critical evaluations of key academic papers in behavioural finance.

(LO5) Students will be able to have practiced skills of problem-solving and critical thinking in behavioural finance.

(S1) A Problem Solver

(S2) Numerate

(S3) Commercially Aware

(S4) An Excellent Communicator

(S5) IT Literate

(S6) Internationally Aware


Teaching and Learning Strategies

Teaching Method: Lecture
Description: Weekly 2 hour lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Seminar
Description: Weekly 1 hour Seminar
Scheduled Directed Student Hours: 12
Attendance Recorded: Yes

Self-Directed Learning Hours: 114
Description: Students will engage in wider reading to support the module and its assessments.

Skills Mapping

Skill 1: A Problem Solver
How is it developed: Lectures, seminars and weekly quizzes
Mode of assessment: Coursework and Examination

Skill 2: Numerate
How is it developed: Lectures, seminars and weekly quizzes
Mode of assessment: Coursework and Examination

Skill 3: Commercially Aware
How is it developed: Lectures, seminars and weekly quizzes
Mode of assessment: Coursework and Examination

Skill 4: An Excellent Communicator
How is it developed: Lectures, seminars and weekly quizzes
Mode of assessment: Cour sework

Skill 5: IT Literate
How is it developed: Lectures, seminars and weekly quizzes
Mode of assessment: Coursework

Skill 6: Internationally Aware
How is it developed: Lectures, seminars and weekly quizzes
Mode of assessment: Coursework and Examination


Syllabus

 

Efficient Market Hypothesis and its limitations;
Limits to Rationality 1: biases and heuristics;
Limits to Rationality 2: behavioural decision making;
Limits to Arbitrage - noisy markets and noise trader hypotheses;
Behavioural Puzzles: Theory and Empirical Evidence;
Overreaction, Underreaction and how to profit from them;
Feedback Trading: Theory and Empirical Identification;
Herd Behaviour: Theory and Empirical Identification;
Speculative Bubbles and Financial Crises;
Behavioural Finance and Financial Regulation;
Special topic: Provides for a current affairs topic (e.g. macro policy impact on financial markets.);


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.