You work as a researcher at an actively managed equity fund. Your supervisor makes the following statement to you.
“Eugene Fama won the Nobel Prize in Economics in 2013 and Richard Thaler won it in 2017. Their views on market efficiency and behavioural finance are, however, quite different.”
She assigns you the task of writing a critical essay evaluating the arguments of the two Nobel Laureates and the implications of these for the fund. You should utilise existing literature (scholarly journals) on market efficiency and behavioural finance as well as real world examples to support your arguments. Your essay should include a conclusion on market efficiency and any implications of your research for the future direction of the fund.
EFB201 Essay Semester One 2018 Weighting = 40% Length = 2000 words You work as a researcher at an actively managed equity fund. Your supervisor makes the following statement to you. “Eugene Fama won the Nobel Prize in Economics in 2013 and Richard Thaler won it in 2017. Their views on market efficiency and behavioural finance are, however, quite different.” She assigns you the task of writing a critical essay evaluating the arguments of the two Nobel Laureates and the implications of these for the fund. You should utilise existing literature (scholarly journals) on market efficiency and behavioural finance as well as real world examples to support your arguments. Your essay should include a conclusion on market efficiency and any implications of your research for the future direction of the fund. EFB201 Essay – Possible Format 1. Introduction - Brief background to market efficiency and behavioural finance and the implications for your firm 2. Discussion of Fama’s views - Include research (e.g. journal articles) and real world examples (e.g. what some fund managers have done) that support or disagree with his arguments. 3. Discussion of Thaler’s views - Include research (e.g. journal articles) and real world examples (e.g. behaviour of markets) that support or disagree with his arguments. 4. Conclusion on market efficiency and recommendations for the firm EFB201 Financial Markets (Sem. 1, 2018) Essay Criteria Sheet — 2. Essay (40%) Student Name: _______________________________________Student No: ______________________ Criteria 7 6 5 4<4 marks="" discipline="" knowledge="" [ks="" 1.1:="" demonstrate="" and="" apply="" integrated="" discipline="" knowledge="" across="" the="" broad="" field="" of="" business="" with="" depth="" in="" one="" or="" more="" core="" business="" disciplines]="" demonstrate="" knowledge="" and="" effective="" application="" of="" financial="" concepts="" and="" models="" (25%)="" outstanding="" range="" and="" depth="" of="" multiple="" links="" to="" suggested="" models="" and="" concepts.="" appropriate,="" high="" quality="" discipline="" literature="" has="" been="" incorporated.="" discussion="" demonstrates="" excellent="" ability="" to="" see="" how="" theories/models="" apply="" to="" practice.="" may="" be="" innovative="" and="" insightful="" in="" seeing="" how="" practice="" is="" informed="" by="" theory.="" significant="" use="" and="" synthesis="" of="" most="" suggested="" models="" and="" concepts.="" reference="" to="" good="" quality="" discipline="" literature.="" discussion="" includes="" the="" key="" action="" steps="" &="" demonstrates="" very="" good="" application="" of="" relevant="" theories/models="" to="" practice.="" generally="" uses="" concepts="" and="" models="" relevant="" to="" the="" topic.="" may="" be="" some="" problems="" e.g.="" limited="" use="" of="" most="" relevant="" literature;="" link="" to="" theory="" &="" models="" may="" be="" implicit="" or="" unclear.="" discussion="" demonstrates="" sound="" understanding="" of="" application="" to="" practice.="" has="" clearly="" incorporated="" some="" relevant="" literature="" and="" frameworks="" but="" may="" lack="" citations="" at="" crucial="" points.="" may="" be="" some="" limitations="" e.g.="" most="" obvious="" concepts="" only="" incorporated,="" and/or="" important="" omissions.="" may="" lack="" clear="" integration="" to="" appropriate="" theory="" throughout="" the="" submission.="" discussion="" demonstrates="" satisfactory="" understanding="" of="" application="" to="" practice.="" lack="" of="" application="" of="" models="" and="" concepts.="" may="" be="" few="" or="" no="" references="" to="" discipline="" concepts="" and="" literature.="" 10="" higher="" order="" thinking="" skills="" [ho="" 2.1:="" investigate="" real="" world="" business="" issues="" and="" situations="" through="" the="" effective="" analysis,="" evaluation="" and="" synthesis="" of="" theory="" and="" practice]="" critical="" analysis="" of="" topic,="" supported="" with="" theory="" (50%)="" takes="" account="" of="" complex="" context.="" evidence="" of="" creative="" and="" lateral="" thinking="" to="" address="" the="" purpose="" of="" the="" project="" in="" a="" comprehensive="" and="" imaginative="" way.="" well-developed="" rationale="" and="" arguments="" to="" support.="" recommendations="" or="" design="" or="" method="" comprehensively="" address="" the="" objectives.="" demonstrates="" high="" degree="" of="" knowledge="" of="" practical="" aspects,="" shows="" creativity="" in="" approach="" has="" addressed="" the="" purpose="" of="" the="" project="" coherently="" and="" with="" some="" attempt="" to="" demonstrate="" imagination.="" takes="" account="" of="" all="" key="" context="" factors="" and="" selects="" the="" major="" issues.="" rationale="" clearly="" follows="" from="" analysis="" of="" context.="" only="" minor="" issues="" related="" to="" analysis="" and="" implementation="" or="" level.="" recommendations="" or="" design="" or="" method="" show="" a="" very="" good="" understanding="" of="" the="" practical="" aspects="" and="" provide="" an="" excellent="" fit="" with="" all="" key="" objectives.="" has="" addressed="" the="" main="" purpose="" of="" the="" project="" in="" a="" proficient="" way.="" recognises="" defined="" context,="" understanding="" is="" clearly="" better="" than="" the="" basic="" level.="" may="" address="" some="" areas="" of="" the="" project="" at="" a="" higher="" level.="" recommendations="" or="" design="" or="" method="" are="" sound="" and="" should="" achieve="" the="" desired="" objectives.="" may="" contain="" some="" problems="" and/or="" omissions="" in="" recommendations,="" (e.g.="" level="" of="" impact="" or="" scope="" of="" recommendations),="" though="" generally="" relevant="" and="" show="" more="" insight="" than="" basic="" level.="" context="" acknowledged="" but="" not="" fully="" addressed="" –="" mechanical="" or="" basic="" level="" response.="" recommendations="" or="" design="" or="" method="" are="" satisfactory="" although="" may="" not="" be="" the="" most="" appropriate.="" there="" is="" clear="" evidence="" of="" a="" planned="" approach.="" has="" addressed="" the="" main="" purpose="" at="" a="" satisfactory="" level.="" may="" have="" some="" omissions="" or="" errors="" in="" focus.="" may="" lack="" clear="" reasons="" for="" all="" recommendations="" or="" design="" or="" methods.="" little="" or="" patchy="" relationship="" established="" to="" context.="" may="" fail="" to="" address="" some="" key="" issues="" explanation="" may="" lack="" coherence.="" may="" include="" lengthy="" descriptions="" without="" analysis="" of="" importance="" or="" influence.="" inadequate="" recommendations.="" little="" or="" no="" planning="" evident,="" will="" not="" achieve="" identified="" objectives.="" 20="" professional="" communication="" [pc="" 3.1:="" use="" information="" literacy="" skills,="" and="" communicate="" effectively="" and="" professionally="" in="" written="" forms="" for="" diverse="" purposes="" and="" contexts]="" communicate="" clearly,="" concisely="" and="" professionally="" (25%)="" submission="" is="" a="" high="" quality,="" professional,="" detailed="" and="" coherent="" project="" report.="" no="" factual="" errors.="" no="" referencing="" errors="" and="" consistent="" method="" used="" throughout.="" any="" tables,="" figures="" or="" appendices="" are="" correctly="" identified="" &="" located.="" submission="" format="" is="" appropriate="" to="" the="" discipline="" and="" reports="" the="" project="" in="" a="" clear,="" concise="" &="" logical="" manner.="" no="" factual="" errors.="" correct="" referencing="" method="" with="" no="" errors.="" minimal="" errors="" in="" presentation="" of="" information.="" submission="" reports="" the="" project="" in="" a="" clear="" and="" concise="" manner="" with="" all="" relevant="" information.="" may="" be="" some="" minor="" problems="" in="" presentation="" or="" structure="" or="" coherence.="" no="" factual="" errors.="" referencing="" follows="" correct="" method="" with="" no="" errors.="" submission="" is="" satisfactory.="" may="" include="" some="" errors="" in="" structure,="" development="" of="" argument="" or="" presentation="" of="" information.="" may="" contain="" a="" minor="" factual="" error.="" referencing="" largely="" follows="" a="" consistent="" system,="" may="" contain="" a="" few="" errors.="" report="" may="" be="" poorly="" structured,="" disorganised="" or="" pitched="" at="" too="" low="" a="" level.="" may="" contain="" range="" of="" factual="" errors="" or="" unsubstantiated="" claims.="" language="" or="" presentation="" may="" be="" inadequate="" for="" professional="" standards.="" referencing="" may="" be="" absent="" or="" unsystematic.="" 10="" total="" marks:="" 40="" grade="" feedback="" 7="" overall="" your="" work="" demonstrates="" in="" an="" interesting="" or="" challenging="" way,="" originality="" based="" on="" proficiency="" in="" all="" the="" assessment="" task="" requirements.="" it="" also="" reflects="" consistent="" excellence="" in="" the="" application="" of="" relevant="" concepts,="" analysis,="" design/methodology="" and="" incorporation="" of="" relevant="" literature.="" 6="" overall="" your="" work="" demonstrates="" a="" comprehensive="" awareness="" and="" understanding="" of="" the="" set="" material.="" it="" also="" reflects="" proficiency="" in="" application="" of="" relevant="" concepts,="" analysis,="" design/methodology="" and="" relevant="" literature.="" 5="" overall="" your="" work="" demonstrates="" the="" ability="" to="" use="" and="" apply="" fundamental="" concepts="" and="" skills.="" it="" goes="" beyond="" mere="" replication="" of="" content="" knowledge.="" it="" reflects="" satisfactory="" and="" sometimes="" proficient="" application="" of="" relevant="" concepts,="" analysis,="" design/methodology="" and="" relevant="" literature.="" 4="" overall="" your="" work="" satisfies="" the="" basic="" learning="" requirements="" of="" the="" assessment="" item.="" it="" reflects="" satisfactory="" application="" of="" concepts,="" analysis,="" design/methodology="" and="" relevant="" literature.=""><4 overall your work does not satisfy the basic learning requirements of this assessment task. assessed by: (print) __________________________________________________________ semester: ________ year: ___________________ additional feedback 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_______________________________________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________________________________ overall="" your="" work="" does="" not="" satisfy="" the="" basic="" learning="" requirements="" of="" this="" assessment="" task.="" assessed="" by:="" (print)="" __________________________________________________________="" semester:="" ________="" year:="" ___________________="" additional="" feedback="" 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