Behavioural Finance - BUSI97449
The elective consists of 4 sessions of 6 hours. Sessions are constructed of lectures, discussions and workshops and they will cover both theoretical and practical aspects of behavioural economics applied to finance and other aspects of behavioural finance. Students will be expected to devote an equivalent amount of learning time in private and group study of module material. While there are not yet many case studies in this field, we will look at real or potential practical situations.
Module Aims & Objectives
Behavioural finance argues that many facts about asset prices, investor behaviour, and managerial behaviour are best understood in models where at least some agents are not fully rational. The central issue in behavioural finance is explaining why market participants make systematic errors that affect prices and returns, creating market inefficiencies. The objective of this elective is to submit evidence of these inefficiencies, recognise individual and social biases that influence the behaviour of economic agents, and analyse some practical applications in various areas of finance.