Course coordinator
Associate Professor Kelvin Tan
For the consultation schedule of all staff involved in this course, kindly refer to the information posted on the Blackboard.
Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Business School
This course provides an introduction to behavioural finance, a discipline that integrates insights from psychology into the study of finance. There will be a focus on understanding the psychological underpinnings of financial decision-making as well as the institutional frictions that may allow these psychological mechanisms to influence economic outcomes. Applications include the pricing of assets relative to fundamental value, trading strategies, managerial behaviour, and household savings and investment decisions.
Course requirements
Prerequisites
You'll need to complete the following courses before enrolling in this one:
(FINM2415 + 2416) or (FINM2411 + 3412) or (ECON1310 + 2010)
Course contact
Lecturer
Dr Shirina Lin
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Please note: Teaching staff doﾠnotﾠhave access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you emailﾠbusiness.mytimetable@uq.edu.auﾠfrom your UQ student email account with the following details:
- Full name,
- Student ID, and
- the Course Code
Aims and outcomes
Behavioural finance is a third-year undergraduate course designed to explore the intersection between psychology and finance. This course aims to provide students with a comprehensive understanding of how individual and group behaviour influences financial markets, investment decisions, and overall economic outcomes. By studying the principles and theories of behavioural finance, students will develop critical thinking skills and gain insights into the factors that drive market anomalies, investor biases, and decision-making processes.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Understand the foundations of behavioral finance and traditional finance theories
LO2.
Analyze Prospect Theory as an alternative to expected utility theory
LO3.
Evaluate the challenges to market efficiency, identify market anomalies, and understand their behavioral explanation
LO4.
Identify and analyze various heuristics and biases and their implications for financial decision-making
LO5.
Examine the role of emotions in investment decision-making and their impact on individual investors' behavior
LO6.
Examine the manifestations of overconfidence in investors and its impact on corporate finance
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Examination |
In-Semester Exam (Online)
|
25% |
30/08/2024 11:25 am |
| Paper/ Report/ Annotation | Case Study | 25% |
11/10/2024 1:00 pm |
| Examination |
Final Exam
|
50% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
In-Semester Exam (Online)
- Online
- Mode
- Written
- Category
- Examination
- Weight
- 25%
- Due date
30/08/2024 11:25 am
- Learning outcomes
- L01, L02, L03
Task description
The exam will be based on the materials covered in Topics 1-3.
This is a time-constrained online exam that will consist of 20 multiple-choice questions, 1.25 mark each (a mix of theory and calculations).
Students are required to log in to the course Blackboard site to complete the exam. Students will have only one attempt to finish.
We will hold the online mid-term exam in Week 6 during the usual lecture time. You can take the exam from any location, but we highly recommend choosing a place with a stable internet connection to ensure a smooth experience.
Date: 30 August 2024, Friday
Time: 10 - 11:10 am (including 10 minutes planning time.)
A 15-minute submission period is available for submitting your examination. If your examination is submitted after this period late penalties will be applied
unless you can demonstrate that there were problems with the system and/or process that were beyond your control.
AI Statement:
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 60 minutes |
| Calculator options | Any calculator permitted |
| Open/closed book | Open Book examination |
| Exam platform | Learn.UQ |
| Invigilation | Not invigilated |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
Case Study
- Mode
- Written
- Category
- Paper/ Report/ Annotation
- Weight
- 25%
- Due date
11/10/2024 1:00 pm
- Learning outcomes
- L01, L02, L04, L05
Task description
Carefully read ‘Rudy Wong, Investment Advisor’ (see URL on Blackboard under “Assessment” and please make sure you also read other materials that will strengthen your assignment).
Please use this case as a background to carefully develop your answers to the two questions mentioned in the document titled "Assignment Instruction".
The maximum length of your submission would be 5 pages (excluding the list of references), using 1.5-line spacing, ‘Times New Roman’ font with size 12, ‘Normal’ margins, justified paragraphs, and page numbering on the bottom right-hand side.
AI Statement:
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Submit to Turnitin via Blackboard
Deferral or extension
You may be able to apply for an extension.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Final Exam
- Identity Verified
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 50%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
- Learning outcomes
- L01, L02, L03, L04, L05, L06
Task description
The final assessment will be based on all materials covered in the course (from Topics 1-10).
- The exam includes short answers, short essays, and problem-solving questions.
- Theory-based short answer questions are usually in point form or short paragraphs and may include a discussion of concepts or theoretical frameworks applicable to a specific situation. You may also be asked to interpret numbers from numerical questions as a part of theory-type answers. Answers will be marked on the basis of completeness, accuracy, evaluation, and analysis dependent on the task.
- Problem-solving includes usually practical questions where you have to show your methodology as well as correct answers. Where methodology is clearly demonstrated in your answer but your final numerical answer is incorrect, you may receive part marks.
AI Statement:
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) tools will not be permitted. Any attempted use of Generative AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | (In person) Casio FX82 series or UQ approved , labelled calculator only |
| Open/closed book | Closed Book examination - no written materials permitted |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
Submission guidelines
Deferral or extension
You may be able to defer this exam.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 29 |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30 - 46 |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
Grades will be allocated according to University-wide standards of criterion-based assessment.
Supplementary assessment
Supplementary assessment is available for this course.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 |
Lecture |
Topic 1: Introduction to Behavioral Finance and Traditional Finance Theories Learning outcomes: L01 |
Week 2 |
Tutorial |
Tutorial 1: Introduction to Behavioral Finance and Traditional Finance Theories Learning outcomes: L02 |
Lecture |
Topic 2: Prospect Theory Learning outcomes: L01 |
|
Week 3 |
Tutorial |
Tutorial 2: Prospect Theory Learning outcomes: L03 |
Lecture |
Topic 3: Challenges to Market Efficiency Learning outcomes: L02 |
|
Week 4 |
Tutorial |
Tutorial 3: Challenges to Market Efficiency Royal Queensland Show Public Holiday - Wednesday 14 Aug 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L03 |
Lecture |
Topic 4: Overconfidence and Investors Learning outcomes: L06 |
|
Week 5 |
Tutorial |
Tutorial Revision for Mid-term Exam Learning outcomes: L01, L02, L03 |
Lecture |
Lecture Revision for Mid-term Exam and/or Case Study Learning outcomes: L01, L02, L03 |
|
Week 6 |
Tutorial |
Tutorial for Discussing Mid-term Exam and/or Case Study Learning outcomes: L01, L02, L03 |
Not Timetabled |
Mid-term exam (Online) Learning outcomes: L01, L02, L03 |
|
Week 7 |
Tutorial |
Tutorial 4: Overconfidence and Investors Learning outcomes: L06 |
Lecture |
Topic 5: Managerial Overconfidence in Corporate Finance Learning outcomes: L06 |
|
Week 8 |
Tutorial |
Tutorial 5: Managerial Overconfidence in Corporate Finance Learning outcomes: L06 |
Lecture |
Topic 6: Heuristics and Biases and Its Implications Learning outcomes: L04 |
|
Week 9 |
Tutorial |
Tutorial 6: Heuristics and Biases and Its Implications Learning outcomes: L04 |
Lecture |
Topic 7: Emotional Foundations and Individual Investors Learning outcomes: L05 |
|
Mid Sem break |
No student involvement (Breaks, information) |
In-Semester Break |
Week 10 |
Tutorial |
Tutorial 7: Emotional Foundations and Individual Investors Learning outcomes: L05 |
Lecture |
Topic 8: Behavioural Explanations for Anomalies Learning outcomes: L03 |
|
Week 11 |
Tutorial |
Tutorial 8: Behavioural Explanations for Anomalies King's Birthday Public Holiday - Monday 7 Oct 2024 - Check Blackboard for announcements about affected classes. Learning outcomes: L03 |
Lecture |
Topic 9: Behavioural Factors and Stock Market Puzzles Learning outcomes: L03 |
|
Week 12 |
Tutorial |
Tutorial 9: Behavioural Factors and Stock Market Puzzles Learning outcomes: L03 |
Lecture |
Topic 10: Behavioural Investing Learning outcomes: L03 |
|
Week 13 |
Tutorial |
Tutorial 10: Behavioural Investing Learning outcomes: L03 |
Lecture |
Revision Learning outcomes: L01, L02, L03, L04, L05, L06 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.