This module aims to provide students with an understanding and appreciation of the fundamental aspects of finance-related decision making in an uncertain environment. Students should be able to appreciate both traditional perspectives of risk and uncertainty, as well as newer behavioural perspectives.
A. demonstrate an appreciation of the core aspects of finance-related decision making under uncertainty
B. relate aspects of optimising and decision making behaviour to scenarios of decision making under both certainty and uncertainty.
C. demonstrate an understanding that agents are not always rational, and be able to explain some common reasons why they are not in the context of financial decision-making.
The module will be delivered through a combination of lectures and seminars. Lectures will be used to introduce key theories, concepts and economic models. In tutorials the student will have the opportunity to solve financial problems and numerical exercises, to analyse case studies, or to make presentations of research.