Lecture 1

Question 1

what is behavioural finance

Answer 1

the study of the influence of psychology on the behaviour of investors or financial analysts

Question 2

is it advantageous to borrow or lend in inflationary period?

Answer 2

better to borrow, money is worth more now than it will be later.

Question 3

what is the carbon tax

Answer 3

A carbon tax is a fee imposed on the burning of carbon-based fuels such as coal, oil, and gas.

Question 4

what is the difference between covariance and correlation

Answer 4

covariance shows how direction of the relationship of two variables while correlation shows the strength of the relationship and the direction