Personal financial behaviour

7.1 Assignment 1: Financial Behaviour Case Study

This INDIVIDUAL coursework accounts for 50% of your final grade. You should prepare up to 2500 words case study with appropriate annexes, if necessary.

The main report must be word-processed and presented in a suitable way using tables, charts/diagrams, if considered necessary to support your explanations. (There is no limit on what can be put into the appendices to the main report).

PART 1: Financial markets anomalies and financial bubbles

Required:

– Find 3 examples of ANY market anomalies or market bubbles from ANY real financial market;
– Explain why you consider each example as market anomaly/market bubble;
– Provide your understanding of the situation, highlighting the possibilities that could help to avoid the consequences (should we avoid the positive consequences?) of a market anomaly/market bubble.
– Compare the analysed examples, explaining opportunities to identify the formation of market anomalies/market bubbles in advance and not allowing them to happen (if possible).

PART 2: Fake news and information manipulation in financial environment

Required:

– Make a selection of fake news (3 or more) in ANY financial market.

– Analyse the common features of your selected examples.

– Suggest how to identify fake news „up on their arrival“ to the public and prevent their negative (or positive?) influence.

– Discuss 6 examples of information manipulation you have ever experienced and explain your behaviour in each situation.

PART 3: Cognitive and emotional biases and their influence on decision making

Required:

– Choose 3 cognitive and emotional biases that influences your behaviour most of all.

– Discuss your decisions under the influence of your selected biases. Are they all the time rational? How could you change your behaviour, applying all knowledge gained during this module?