Behavioural Finance..

Topics: Finance, Null hypothesis, Psychology Pages: 2 (275 words) Published: December 8, 2010
A study on Behavioural Finance

Problem Statement:
To understand how and to what extent markets and investor decisions have been influenced by market moving emotions. Objectives:
The main objectives of this research are
1. To understand the roots and origins of behavioural finance. 2. To understand the basic investor psychology, components and aspects of the same. 3. To understand the components, heuristics and anomalies involved in behavioural finance. 4. To determine according to gender and age group, what are the various choices of investments, priority given to characteristics of investment alternatives and decisions made on the basis of risk and strong market movements.

Null Hypothesis: The market moving emotions have no influence on the behaviour of investors. Alternative Hypothesis: The market moving emotions have an influence on the behaviour of investors.

Benefits of the Research:
1. It will help to understand the roots and origins of behavioural finance. 2. It will help to understand the basic investor psychology, components and aspects of the same. 3. It will help to determine according to gender and age group, what are the various choices of investments, priority given to characteristics of investment alternatives and decisions made on the basis of risk and strong market movements.

Research Methodology:
A sample of 50 people will be taken of different age, income groups and data will be analysed.

Sources of Data:
The primary research will include Questionnaires, personal interviews which will contain closed ended questions. For the secondary Research data will be collected from different websites, e-journals, journals, books and other articles which have been published. The secondary data will be compared with the primary to prove the hypothesis.
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