The University of Southampton
Courses

MANG6239 Behavioural Finance

Module Overview

The module aims to introduce you to the key concepts of marketing metrics and how they can be used effectively in the business environment within which marketers now operate. To provide a course of study which engages you in the practice and theory of marketing metrics and develop the quantitative analytical skills needed to manage marketing productivity.

Aims and Objectives

Module Aims

- The module aims to introduce you to the key concepts of marketing metrics and how they can be used effectively in the business environment within which marketers now operate. - To provide a course of study which engages you in the practice and theory of marketing metrics and develop the quantitative analytical skills needed to manage marketing productivity.

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • Where and how behavioural biases affect decision making in environments of uncertainty and risk.
  • The core theories of Behavioural Finance and how these relate to today’s business environment.
  • The implications of limits to arbitrage for financial markets.
  • The role of heuristics and biases in influencing asset pricing and investment behaviour of others.
  • The theoretical and empirical evidence for a variety of investment strategies based on the assumption of inefficient markets.
  • The difference between risk and uncertainty.
  • The history and evolution of Behavioural Finance.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Construct a viable analytical framework for choosing between investment opportunities.
  • Recognise and adjust for heuristic biases in financial analysis.
  • Generate realistic return forecasts and risk assessments.
  • Critically evaluate the relative merits of alternative investments or trading strategies.
  • Demonstrate effective financial decision-making in risky market settings.
  • Critically evaluate how information can inform us about price and the ways in which this can be misinterpreted, leading to systematic biases.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Analyse financial opportunities.
  • Make effective investment decisions.
  • Converse competently on financial matters.
  • Work as part of a team (This learning outcome is not assessed).
  • To provide an alternative framework for understanding financial market behaviour to the conventional Efficient Market Hypothesis (EMH) based approach.
  • To demonstrate how cognitive biases and heuristics influence investment behaviour and determine asset prices.
  • To forge a link between academic research and investment practice.

Syllabus

To provide an alternative framework for understanding financial market behaviour to the conventional Efficient Market Hypothesis (EMH) based approach. To demonstrate how cognitive biases and heuristics influence investment behaviour and determine asset prices. To forge a link between academic research and investment practice.

Learning and Teaching

Teaching and learning methods

Teaching methods include: - Lectures - PowerPoint - Presentations - Mini class exercises - Role-playing games - Discussion, - Case studies - Class discussion of relevant academic papers - Videos Learning activities include: - Case study - Role-playing games - Problem solving activities - Class discussion - Independent study

TypeHours
Independent Study126
Teaching24
Total study time150

Resources & Reading list

Case Studies. 

Forbes (2009). Behavioural Finance. 

Andrei Shleifer (2000). Inefficient markets: An Introduction to Behavioral Finance. 

Lucy F. Ackert and Richard Deaves (2009). Behavioural Finance: Psychology, Decision-Making and Markets. 

Academic Papers. 

Assessment

Formative

In-class activities

Summative

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat

MethodPercentage contribution
Examination  (2 hours) 100%

Referral

MethodPercentage contribution
Examination  (2 hours) 100%

Repeat Information

Repeat type: Internal & External

Costs

Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:

Textbooks

Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the core/recommended text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at www.calendar.soton.ac.uk.

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