In this subject you will learn about the behavioural biases, heuristics and framing effects that present obstacles to maximising the value derived from financial and investment decisions. In other words, Behavioural Finance examines how individual financial decision making and behaviour affect outcomes in financial markets. This will include examination of … For more content click the Read more button below.
In this subject you will learn about the behavioural biases, heuristics and framing effects that present obstacles to maximising the value derived from financial and investment decisions. In other words, Behavioural Finance examines how individual financial decision making and behaviour affect outcomes in financial markets. This will include examination of the trading and investment behaviours of various types of investors, including individual and institutional investors, and in various market settings, with predominant focus on equity investment and trading markets.
Capstones provide students with a way of integrating and applying knowledge and skills gained throughout their course.
No
Academic progress review - Schedule A subject
No
Subject instances
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Learning resources
Prescribed - Book - The Psychology of Investing
Title:The Psychology of Investing
Resource requirement:Prescribed
Author/editor:Nofsinger, John R
Year:2014
Edition/volume:6th edn
Publisher:Pearson Education, New Jersey
ISBN:9780130930248
Career ready
Work based learning (placement):No
Graduate capabilities
COMMUNICATION - Communicating and Influencing
DISCIPLINE KNOWLEDGE AND SKILLS
INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving
INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry
PERSONAL AND PROFESSIONAL - Leadership and Teamwork
Subject intended learning outcomes
On successful completion you will be able to:
1.
Critically identify the behavioural biases, heuristics and framing effects that present obstacles to maximising the value derived from corporate financial and investment decisions.
2.
Critically assess and analyse how individual financial decision making and behaviour affect investment outcomes in financial markets.
3.
Critically highlight the relevant issues that arise in comparisons between efficient ('economically rational 'markets and less understood but more realistic behavioural ('partially rational' or 'irrational 'markets.
4.
Demonstrate how educated investors and corporate decision makers can overcome these behavioural biases, heuristics and framing effects to improve their corporate financial and investment decisions.
Learning activities
Seminars will cover key concepts to be applied in individual continuous assessment tasks and the final examination
