IOP3708 Investor Psychology

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...

IOP3708 Ass 2. Page 1 of 20 Ogundipe O.T Investor Psychology (IOP3708) Question 1 Given the current economic and financial conditions following the COVID-19 pandemic since December 2019 and the aftermath of the global recession, which is frequently referred to as ‘the new normal’, it is not surprising that many individual and institutional investors are interested in new alternative financial assets that could provide a higher level of returns. Since many investors are currently h...