1. Local investing and informational advantages availability and attention-grabbing 2. Anchoring vs herding and analysis Unit 9 Implications of overconfidence for financial decision-making Theory class hour: 3 Content of courses 1. Overconfidence and excessive trading 3. Underdiversification and excessive risk taking 4. Excessive optimism and analysis Capability requirements 1. Know the overconfident traders' mod 2. Can use dynamics of overconfidence in market practitioners 3. Can use gender and overconfidence analysis in the financial realm Application of financial decision-making in Finance Unit 10 Individual investor and the force of emotion Theory class hour: 3 Content of courses 1. Mood of the investor and the mood of the market The disposi Capability requirements 1. Know the prospect the 2. Know the experimental evidence 3. Can use prospect theory to do sequential decision-making Mood of market, pride and regret, evidence of a house money effect on a large scale General review Examination 7. Grading Policy Grading No of the learning Exams and Assignments Percentage Computation Outcomes evaluated Final exam LO11/L081 20% LOI1/LO31/L081 X2 Case analysis practice 011L03/081 X3 Performance in class 20% LOI1/L031/L081 Instructor: lu zheng Deans signature Date: Aug 2, 2021 Date: Aug 2. 20215 1. Local investing and informational advantages, availability and attention-grabbing, 2. Anchoring vs. herding and analysis Unit 9 Implications of overconfidence for financial decision-making Theory class hour: 3 Content of courses 1. Overconfidence and excessive trading 2. Demographics and dynamic 3. Underdiversification and excessive risk taking 4. Excessive optimism and analysis Capability requirements 1. Know the overconfident traders’ model 2. Can use dynamics of overconfidence in market practitioners 3. Can use gender and overconfidence analysis in the financial realm Teaching focus Application of financial decision-making in Finance Unit 10 Individual investor and the force of emotion Theory class hour: 3 Content of courses 1. Mood of the investor and the mood of the market 2. The disposition effect 3. House money Capability requirements 1. Know the prospect theory as an explanation for the disposition effect 2. Know the experimental evidence 3. Can use prospect theory to do sequential decision-making Teaching focus Mood of market, pride and regret, evidence of a house money effect on a large scale. General review Examination 7. Grading Policy Grading Computation Exams and Assignments Percentage No.of the Learning Outcomes evaluated 1 Final Exam 40% L011/L081 X1 homework 20% L011/L031/L081 X2 Case analysis practice 20% L011/L031/l081 X3 Performance in class 20% L011/L031/L081 Instructor：lu zheng Dean’s signature: Date：Aug 2, 2021 Date：Aug 2, 2021