Behaviour
[14 marks]Cognitive Dissonance (c )Emotions
[ marks]Bounded Rationality
[ marks]Anomalies
[ marks]Prospect theory
[ marks]Heuristics
[ marks]Behavioral finance often challenges the traditional efficient market hypothesis (EMH). Explain the EMH and provide examples of how behavioral biases can lead to market inefficiencies.
[7 marks]Do you think Market Bubble does have impact on global economy?
[7 marks]Describe how the "herding behavior" of investors can contribute to market bubbles and crashes. Provide real-world examples.
[7 marks]Explain the concept of "anchoring" in the context of behavioral finance. Provide an example of how anchoring can impact investment decisions.
[7 marks]Distinguish between fundamental & calendar anomalies by giving practical examples
[7 marks]What is the Role of neural functions during financial decision making process?
[7 marks]Distinguish between Framing Bias and Mental Accounting.
[7 marks]Critically evaluate the tools of Neurofinance that helped in financial decision making.
[7 marks]Mr. Pankaj is selecting the stocks for investment of Ten lakh rupees. Suggest him some ways to avoid the biases in his decision making.
[7 marks]Differentiate cognitive and emotional bias. Explain some the important emotional biases in detail
[7 marks]What is Forensic Accounting? Explain the various tools of applied in Forensic Accounting. Page 1 of
[2 marks]Mrs. Asha is a married, home maker,forty year old. Her primary investment goal is to get regular Income from her Investments and assets; she does not, under any circumstances, want to lose money. Mrs. Asha exhibits these behavioral biases: • loss aversion (the tendency to feel the pain of losses more than the pleasure of gain), • anchoring and adjustment (the tendency to believe that current market levels are “right” by unevenly weighting recent experience), and • selective memory (the tendency to recall only events consistent with one are understanding of the past).
[ marks]What effect do a client’s biases have on the asset allocation decision?
[7 marks]Should you moderate or adapt to these biases?
[7 marks]Sarah is a 35-year-old professional with a stable job and a strong desire to build wealth for her retirement. She started investing in the stock market five years ago with the goal of achieving long-term financial security. Sarah's portfolio consists of a mix of stocks, bonds, and mutual funds.
[ marks]Evaluate her behavior in context of Overconfidence Bias, anchoring and adjustment, loss aversion bias?
[7 marks]How does behavior impact finance decision? Page 2 of
