Efficiency and behavioral finance

Efficiency and behavioral finance

Bachelor of Business Studies (BBS) — Fourth Year

Subject: Fundamentals of Investment (FIN 253)

Unit 6: Common Stock Analysis and Valuation

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of efficiency and behavioral finance.
• Apply the relevant financial concepts or calculations and explain their assumptions, risks and analytical limits.

Curriculum Scope

• Efficient markets and behavioral finance: level of market efficiency, investor behavior and stock prices

Detailed Microsyllabus

1. Market efficiency

   1. Different levels of the efficiency hypothesis.
   2. Information and price adjustment.
   3. Implications under the theory's assumptions.

2. Behavioral finance

   1. Investor judgment and behavior.
   2. Possible effects on prices.
   3. Distinguish an explanatory concept from evidence of a predictable trading opportunity.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 89–91.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here. Examples involving current laws, rates, institutional products or Nepalese status must identify the relevant period and official materials; no changing numerical or legal requirements are invented here.