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Unit of Study

Behavioural Finance
UoS Code FINC6022
Credit points 6
Offered Semester 1
Prerequisites FINC5001
Assumed Knowledge
Additional Information
Lectures 1x 3hr seminar per week
Assessment mid-term exam (30%), group assignment (20%), and final exam (50%)
Description Behavioural finance examines how individual financial decision making and behaviour affect outcomes in financial markets. The unit begins with a review of the foundations of efficient markets, and then draws comparisons between the efficient (\\\'economically rational\\\') market and the less understood but possibly more realistic behavioural (\\\'partially rational\\\' or \\\'irrational\\\') understanding of markets. The philosophy of the unit is that both viewpoints have advantages and each adds something new to our understanding of investor behaviour, both at the level of individual traders and at the level of the market interpreted as a mechanism for aggregating opinion and attitudes to risk.