I'm actively looking for an interesting topic for my master's thesis (final dissertation) related to behavioral finance but I could use some help on where to start or how to make a good case. What...


I'm actively looking for an interesting topic for my master's thesis (final dissertation) related to behavioral finance but I could use some help on where to start or how to make a good case.

What are some suggestions?

Some of my interests are the following:
•herding behavior
•mutual funds
•extreme events, e.g. financial crisis
•disposition effect
•loss averssion & investor risk
•foreign exchange

I work at a Scandinavian mutual funds company, so anything related to mutual funds would be extra interesting for me, as I could probably get some good help in-house - specially if the topic suggests a need for interviews. I'm based in Scandinavia too.

As a matter of fact, I do have a case in mind, but I would really appreciate any other suggestions. It would also be of great help if you could recommend me some good reading material - be it existing master's theses available online, or good books that go about the topics mentioned above (or any other interesting ones).

I am open to suggestions and opinions.

PS: I should probably mention that, yes, I did try Google and other search engines (e.g. library archives) before coming here :)

Asked on by rfne

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wordprof | College Teacher | (Level 1) Educator Emeritus

Posted on

To me, the relationship between mutual funds and opportunity costs has always been complex and intriguing. When a person chooses a set of mutual funds, he/she is automatically eliminating other investment opportunities, primarily the chance to get in on the ground floor of a single stock with huge growth potential. Because of the phenomenon of shake-down filtering-out occasions in new investments, many otherwise smart and brave investors take the relatively safe avenue of mutual funds, which, by definition, are fairly non-risky. Part of the pay-off of “playing the market” is the thrill and delight of surviving a scary situation. As for a thesis statement, you might ask “How does one identify the psychological opportunity cost of taking a safe, common road, if one considers the non-financial benefits?” You might even want to investigate whether Scandinavian nationality or history play a part in those opportunity costs. It has always seemed to me that mutual funds were too “safe” to feed one’s appetite for speculation.

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