UROP Project
Behavioral Biases and market returns
Contact
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
MoveOn
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.