Reference no: EM13712111

QUESTION 1.
As you well know by now, Valuation is the central piece in the whole finance profession - from the perspectives of both Investment and Trading branches of the field - and if we take valuation out of the discipline, we will not have much to learn from or even talk about. Explain in needed details along with relevant and applicable examples how this Behavioral Finance class helped you to further and expand your knowledge about the whole valuation concept; including different valuation models and methods.
Be organized in responding. This simply means present your responses in an orderly and organized fashion. In other words, you do not want to jump around in your responses. Points will be taken off for not being organized in responding to the questions asked.
Maximum pages allowed: three pages, double-space, size 12; reference page(s) does not count in the maximum page limit.
Grade: 125

QUESTION 2.
Main theme of the present question: Financial Markets and Financial Regulation in the United States: Applications from my Behavioral Finance Class.
As you can see from the NY Times article published just three days ago in here: https://www.nytimes.com/2015/04/15/your-money/financial-services-rules-to-protect-retirement-savings.html?_r=0 , regulation of the finance industry is a fact of life for all of us who live in this country; a fact that we may not even want to discuss in our regular conversations with others. However, a fact that makes great question for a classroom like this one where the focus is on application of learned theories and models to real-life problems like the topic of the said piece in the paper. The only thing that I add relative to the article and the below question is this: The article is just an example that is going on in our economy and you do NOT have to do extra research beyond what you have learned in this class except reading the said article. In other words, answer the question based on what you have learned in this class. (A copy of the piece is added at the end of this exam for your convenience.)
This question then tests your ability to apply what you may have learned in this course to a critical decision problem in finance; i.e., financial markets and financial regulation. More specifically, the question here can be posed like this: What does Behavioral Finance (BF) have to offer in a debate where the main topic is Financial Markets and Financial Regulation? Focus both on the micro (individual) behavior and the macro (system-wide/economy-wide) behavior. You may submit your writing/response in three parts:
A. In Favor of- the part that favors regulation of financial markets,
B. In Opposition to- the part that opposes regulation of financial markets
C. In Conclusion- a summary of the key learnings as explained in parts A and B in above.
Moreover, in providing your answer, you may bring some supporting or opposing arguments from outside the class (for example from credible outside sources or readings). However for most of your answers in this question, and especially for grading purposes, I want you to build upon the materials that you have learned as a result of taking this class. Make sure to consult and refer to ALL the assigned readings and materials for the course, including those notes posted in the Announcement area or other areas in the class. Just do your best as you may be surprised by what you may have learned and what you have to say regarding this question. ?
Be organized in responding. This simply means present your responses in an orderly and organized fashion. In other words, you do not want to jump around in your responses. Points will be taken off for not being organized in responding to the questions asked.
Maximum pages allowed: four pages, double-space, size 12; reference page(s) does not count in the maximum page limit