BEHAVIOURAL FINANCE AND MODELLING

Assignment -1

1. Explain the fundamental building blocks of Behavioral Finance, including

Prospect Theory and Mental Accounting
2. Discuss the contributions of Behavioral Finance from
 Daniel Kahneman, Amos Tversky, Richard Thaler, Robert J. Shiller,
Michael Pompian, and Parag Parikh
3. Define heuristics and biases in the context of Behavioral Finance.
4. Distinguishes Behavioral Finance from traditional finance
5. Explain the concept of asymmetric information in financial markets and its
impact on investor behavior.
6. Discuss the role of egocentric bias in shaping investor behavior
7. Explain the Herd Behavior with suitable example.