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Module Descriptor School of Computer Science and Statistics

Module CodeCS7069
Module NameBehavioural Finance
Module Short Title
Semester TaughtSemester 1
Contact Hours

Lecture hours: 18

Lab hours:5

Tutorial hours:2

Total hours:25

Module PersonnelProf. Khurshid Ahmad
Learning Outcomes

On the successful completion of this module the student should be able to: 

  • Understand the basis of how prices of equities and commodities change over time
  • Identify the main biases and heuristics commonly associated with decision making under uncertainty in finance. 
  • Evaluate the role of the language used in the media in determining the asset dynamics of financial instruments
  • Compute stylised facts or statistical moments of any set of returns for a given equity and commodity
  • Utilise methods and techniques of information extraction and content analysis for calculating `sentiment' indices
Learning Aims

This module aims to provide students with an introduction to the emerging issues of behavioural finance.

Module Content

Fundamental Analysis, Technical Analysis and Behaviour Analysis in Finance

Price and Volume Fluctuations

Cognition, Decision Making & Language

Market Volatility: Economic Utility and Financial Prospects

Uncertainty in Decision Making: Herd Behaviour and Competition

Sentiment Analysis and Risk  Computation

Recommended Reading List

Forbes, William. (2009). Behavioural Finance. Chichester: John Wiley & Sons.

Kahneman, Daniel (2011).Thinking, Fast and Slow.  New York: Farrar, Straus and Giroux.

Module Prerequisites
Assessment Details

80 % Exam:

20 % Coursework:

Description of assessment & assessment regulations.

The written examination will comprise 5 questions and the students are expected to answer three.

The coursework aims include:

  1. To introduce the students to financial workstations and to this end access will be provided to one such workstation and a sentiment analysis system.
  2. The student is expected to choose a case study based on the changes in share price value of Irish and American banks during 2005-2012. The students are expected to create a system which will help in the integration of sentiment and prices.

The case study will comprise a 800-1000 word report together with a presentation.

Module Website
Academic Year of Data