Iop 3708 notes Study guides, Class notes & Summaries

IOP3708_EXAM_NOTES Page 1 of 39 IOP 3708 NOTES Specific Outcome 1 Specific Outcome 1: Students can describe and discuss behavioural finance, neuroeconomics, firstly in terms of background, conventional finance, prospect theory and market efficiency; secondly the behavioural science foundations of heuristics and biases; overconfidence, and emotional foundations and thirdly, in terms of the history of decision making Assessment criteria: • Theories and definitions of behavioural finance...

• Theories and definitions of behavioural finance and behavioural economics and Neuroeconomics are researched to explain investment behaviour and the challenges to market efficiency • Standard economic theory and behavioural economic theory are compared with examples. Prospect theory, framing and mental accounting are defined, described and applied to explain behaviour • Systematic biases, heuristics, overconfidence, emotional foundations and values distortion are defined. How these cau...