2 Equally weighted critical thinking essay

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moralhazard_srf_criticalthinkingessayassignment.docx

FINAL TAKE-HOME ASSIGNMENT

The final take home has 2 parts, 2 equally weighted critical thinking essays on moral hazard and socially responsible finance.

Moral Hazard Critical Thinking Essay Assignment

The prompt

The term “moral hazard” has been in the news over the past few years. What does this mean? Why is it a concern to many financial institution and market observers? What role, if any, did it play in the financial crisis of the last decade? What, if anything, do you think should be done about it?

Your essay should be 2 pages (approximately 500 words).

Content Grade Rubric

Student:

Prompt

4

3

2

1

0

Score

What does the term “moral hazard” mean?

Fully defined

Partially defined

Incorrectly defined

Not answered

Why is it a concern to many financial institution and market observers?

Fully explained

Partially explained

Incorrectly explained

What role, if any, did it play in the financial crisis of the last decade?

Fully explained

Partially explained

Incorrectly explained

What, if anything, do you think should be done about it?

Thoughtful, complete answer

Partial answer

Inappropriate answer

Socially Responsible Finance Critical Thinking Essay Assignment

The prompt

In recent years, there has been a growing debate around “socially responsible finance”. Demand for opportunities labelled as “socially responsible investments” (SRI) has increased, behavioral finance and institutional “nudging” are receiving more attention, and corporate governance of institutions is broadly discussed. Overall, potential returns as well as conflicts of interest, environmental and social impact are more closely scrutinized. What are the origins of this movement? What role do you think knowledge about behavioral finance and SRIs should play in future personal and professional decisions?

The details

Your essay should be 2 pages (approximately 500 words).

Student:

Prompt

4

3

2

1

0

Score

What are the origins of SRI? How does it work in practice?

Fully explained

Partially explained

Incorrectly explained

Not answered

What is the evidence to date about whether SRI investments outperform or underperform non-SRI investments?

Fully explained

Partially explained

Incorrectly explained

What is the origin of behavioral finance? In which decisions can be found?

Fully explained with citations

Partially explained/no citations

Incorrectly explained

Is there evidence of institutional “nudging” benefiting main street?

Thoughtful, complete answer

Partial answer

Inappropriate answer

How do you think reading about behavioral finance and SRIs will affect future personal and professional decisions?

Thoughtful, complete answer

Partial answer

Inappropriate answer