UROP Project

Behavioral Biases and market returns

Contact

Name

Daniel Holder

Program Director UROP

Telephone

workPhone
+49 241 80-90695

E-Mail

Key Info

Basic Information

Project Offer-Number:
900
Category:
UROP International
Field:
Business Administration
Faculty:
8
Organisation unit:
Department of Finance
Language Skills:
Higher level of proficiency in English is required. German is not required.
Computer Skills:
Excel
Others:
SPSS and STATA

The proposed study intends to examine the irrational nature of investor behavior. It aims to study the behavioral biases, both emotional and cognitive, which shape investor behavior and affect the decision making process. It seeks to determine the investor type: the individualists, the adventurers, the guardians, the celebrities or the straight arrow (Bailard, Biehl, & Kaiser, 1986) and that how it affects selection of investment decision method and market returns.

Task

The main task is to develop a theoretical model that can link behavioral biases to financial decisions of investors. Subsequently, we use a large dataset of market related data to examine our hypotheses empirically.

Requirements

Strong mathematical background and analytical capabilities are required. The student should also be proficient using Excel. Basic knowledge of the statistic softwares such as STATA or SPSS is desirable but not necessary.