Download and extract BFE_Assignment2020.zip

Instructions

2020. Download and extract BFE_Assignment2020.zip. To complete this assessment task, you must use dataXY.dta where XY refers to the last two digits of your anonymous exam code. For example, if your anonymous code is Z0912345, you must use data45.dta. The data file is in Stata Assume that the data originated from a risk preference experiment which involved the same set of decision tasks and the same incentive system as the source experiment of BFE_Sect4.dta (i.e. the lecture example data for section 4 of this module). All variable names and definitions are identical to BFE_Sect4.dta.

1. Kaustia (2010) refers to the following article:

Kaustia M. 2010. Prospect Theory and the Disposition Effect. Journal of Financial and Quantitative Analysis 45: 791-812. [Link]

• Your assignment must include a code appendix that reports all computer codes that have been used to generate your output. The code appendix DOES NOT count towards your overall word limit. Failure to include the code appendix may result in a loss of marks

Assessment Task

Critically evaluate the parameterisation of Prospect Theory in section II.A of Kaustia (2010, pp.794-796). Use your assignment data file to estimate structural econometric models of decision making under risk, and use the empirical results to support your critical discussion. You must provide sufficient information on your models and estimation methods, to help readers to understand the empirical results. All empirical results must be reported in publication-quality tables.

Overall word limit, 2500 words maximum.

The word count should:

• Include all the text, including title, preface, introduction, in-text citations, quotations, footnotes and any other item not specifically excluded

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• Exclude diagrams, tables (including tables/lists of contents and figures), equations, executive summary/abstract, acknowledgements, declaration, bibliography/list of references and appendices. However, it is not appropriate to use diagrams or tables merely as a way of circumventing the word limit. If a student uses a table or figure as a means of presenting his/her own words, then this is included in the word

Examiners will stop reading once the word limit has been reached, and work beyond this point will not be assessed. Checks of word counts will be carried out on submitted work, including any assignments or dissertations/business projects that appear to be clearly over-length. Checks may take place manually and/or with the aid of the word count provided via an electronic submission. Where a student has intentionally misrepresented their word count, the School may treat this as an offence under Section IV of the General Regulations of the University. Extreme cases may be viewed as dishonest practice under Section IV, 5 (a) (x) of the General Regulations.

Very occasionally it may be appropriate to present, in an appendix, material which does not properly belong in the main body of the assessment but which some students wish to provide for the sake of completeness. Any appendices will not have a role in the assessment – examiners are under no obligation to read appendices and they do not form part of the word count. Material that students wish to be assessed should always be included in the main body of the text.

YOUR COMPLETED ASSIGNMENT MUST BE SUBMITTED TO DUO NO LATER THAN 11.59AM ON TUESDAY 28 APRIL 2020.

MARKING GUIDELINES

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Performance in the summative assessment for this module is judged against the following criteria:

• Relevance to question
• Organisation, structure and presentation
• Depth of understanding
• Analysis and discussion
• Use of sources and referencing
• Overall conclusions

Students should use the template on DUO for their assignments.

The word count should include all the text (plus endnotes and footnotes), but exclude diagrams, tables, bibliography, references and appendices. Guidance on referencing can be found in your Assessment handbook under ‘Things you Need to Know’ on DUO.

The assignment which you submit on-line should INCLUDE all appendices.

PLAGIARISM and COLLUSION

Students suspected of plagiarism, either of published work or work from unpublished sources, including the work of other students, or of collusion will be dealt with according to Business School and University guidelines.

Your assignment will be put through the plagiarism detection service.