Aim: Explain and apply relevant behavioural economics/finance concepts to issues in finance and how they impact decision making.
Assessment Overview and instructions
- You are expected to abide by Curtin University’s Academic Integrity policies in submitting this assessment. Your answers are expected to be your own work (i.e., not a direct copy/paste) and not plagiarised. Direct quotations must be appropriately
- The following two case studies require you to identify, explain and apply economics/finance concepts (traditional and/or behavioural) that are relevant to the information presented in the two linked sources. Hint: You may wish to think about what is underlying the popularity or behaviours being described in both articles.
- You are expected to reference appropriate journal article(s) in support of your
- Definitions: any behavioural finance concepts you use must be sourced from a journal article(s) or textbook and used in the context of your o The journal articles you reference need not be from the presentation list; you may choose other appropriate academic journal articles.
- You can also include supporting references from other sources that you feel may assist you in structuring your answer, e.g. other non-academic journal references, facts, figures, or reports.
- Answers must be submitted as a typed Word document or PDF via Turnitin by the due date. Standard late penalties apply.
- If there are issues with Turnitin submission or Blackboard, the submission must be made via email to the UC before the due date.
- Ensure your name, student ID and tutorial day/time are clearly shown on your submission and that you have submitted the correct file. You must check your final
- Check also for proper referencing (see Unit Outline for more details).
- The maximum word limit is 600 words for case study 1 and 1200 words for case study 2 (excluding references).
Case Study 1 – Cash Stuffing [10 Marks]
Watch and read the following article from ABC News, “‘Cash stuffing’ is the budgeting hack gaining popularity on social media. Here’s how it works”, available:
*note this article has a short video clip as you visit the link above on ABC News webpage.
- Utilise one (1) behavioural finance heuristic covered in this unit which might explain the latest trend in “cash stuffing” in order to save money. Your answer should consider why cash stuffing might work, and contrast to a more traditional or rational view of budgeting and saving money.
[Maximum word count: 600 words]
Case Study 2 – Gen Z Investing [30 Marks]
One of your friends has sent you a referral link for an online trading platform/app which has been frequently mentioned on all your social media platforms. As part of the referral, you’ve been told it’s easy to sign up and both of you get a free “bonus” amount to start trading with.
By amazing coincidence, as part of your studies (aka. right now), you are being asked to read and analyse the following survey on Gen Z investing recently published by the CFA Institute and Financial Industry Regulatory Authority Investor Education Foundation (FINRA Foundation). A copy of this report is available on Blackboard in the assessments folder and accessible online with associated media report via this link:
As a newly minted student studying behavioural finance you can identify and apply some of the concepts you’ve learnt about in this unit which are being reflected in the information presented in the report analysing the investments of Gen Z.
- Read the report on Gen Z investing and analyse the responses and information
- Identify, define, and discuss three (3) behavioural finance concepts covered in this unit which might explain some of the investing decisions and behaviours of Gen Z presented in this report.
- You do not need to analyse all the report’s You may wish to focus on a particular country, or you can choose to pick aspects which relate to all countries.
- Compare and contrast the concepts you have identified to a more traditional or rational view of Your discussion should also consider why the 3 concepts you identified may not necessarily conform with rational expectations in the context of traditional finance.
Your discussion must be presented in context to, and refer to, the data and statistics in the report. You will need to utilise behavioural finance/economics concepts covered in this unit and you need to refer to research in academic journal articles which support the concepts and behaviours you identify. These journal articles do not need to be from the presentation list.