Download GTU (Gujarat Technological University) MBA 2019 Winter 3rd Sem 4539282 Behavioural Finance Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? III EXAMINATION ? WINTER 2019
Subject Code: 4539282 Date:02-12-2019
Subject Name: Behavioural Finance
Time: 10:30 AM TO 1.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Answer the following in brief Marks
Q.1 (a) Loss aversion bias
(b) Classical thought of finance
(c) Illusion of knowledge
(d) Noise trading
(e) Benford?s law
(f) MICE
(g) Hindsight bias
14
Q.2 (a) Identify the differences between rational / classical
finance and behavioral finance and explain them in
detail.
07
(b) EMH states that investors are rational. Behavioral
finance states they are not. Justify your stand by
explaining market and investor behaviour supporting
your stand.
07
OR
(b) Write a note on the below mentioned contributor of
behavioral finance:
1. Daniel Kahneman and Amos Tversky
2. Richard Thaler
3. Michael Pompain
07
Q.3 (a) Write in detail some of the important heuristics. 07
(b) Differentiate cognitive and emotional bias. Explain
some the important emotional biases in detail.
07
OR
Q.3 (a) How do biases interact? Explain various ways
through which one can overcome biases and
debiases.
07
(b) What is value investing? Write the value investment
behaviour of Warren Buffet.
07
Q.4 (a) What do you understand by anomaly? What are
different market anomalies as per behavioral
finance?
07
(b) How behavioral finance explains bubbles? Explain
in detail various causes of bubbles.
07
OR
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Page 1 of 2
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA - SEMESTER ? III EXAMINATION ? WINTER 2019
Subject Code: 4539282 Date:02-12-2019
Subject Name: Behavioural Finance
Time: 10:30 AM TO 1.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q. No. Answer the following in brief Marks
Q.1 (a) Loss aversion bias
(b) Classical thought of finance
(c) Illusion of knowledge
(d) Noise trading
(e) Benford?s law
(f) MICE
(g) Hindsight bias
14
Q.2 (a) Identify the differences between rational / classical
finance and behavioral finance and explain them in
detail.
07
(b) EMH states that investors are rational. Behavioral
finance states they are not. Justify your stand by
explaining market and investor behaviour supporting
your stand.
07
OR
(b) Write a note on the below mentioned contributor of
behavioral finance:
1. Daniel Kahneman and Amos Tversky
2. Richard Thaler
3. Michael Pompain
07
Q.3 (a) Write in detail some of the important heuristics. 07
(b) Differentiate cognitive and emotional bias. Explain
some the important emotional biases in detail.
07
OR
Q.3 (a) How do biases interact? Explain various ways
through which one can overcome biases and
debiases.
07
(b) What is value investing? Write the value investment
behaviour of Warren Buffet.
07
Q.4 (a) What do you understand by anomaly? What are
different market anomalies as per behavioral
finance?
07
(b) How behavioral finance explains bubbles? Explain
in detail various causes of bubbles.
07
OR
Page 2 of 2
Q.4 (a) What is Forensic Accounting? Explain the role of
FA in detecting corporate frauds.
07
(b) What is neurophysiology? Why the study of
neurophysiology important for investment advisor?
07
Q.5
The question is a matter of life and death: a new
disease is sweeping across the country, and
epidemiologists project it will claim the lives of 600
people. Scientists have proposed two alternative
programs to address the outbreak, and you must
decide which to implement
? If program A is adopted, 200 people will be
saved.
? If program B is adopted, there is a one-third
probability that 600 people will be saved, but
a two-third probability that no one will be
saved at all.
(a) Which one do you select? Why?
07
(b) Explain in detail the prospect theory in line with the
above situation.
07
OR
Q.5 (a) What are the key tenets of prospect theory? 07
(b)
According to you, how would a gambler take the
decision in the above situation? Explain
07
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This post was last modified on 19 February 2020