Course Summary
Behavioural finance focus on the psychological influences and biases that affect the financial behaviours of investors and financial practitioners in market. The influences and biases can be the source for explanation of all types of market anomalies. In this course, we examine these biases, and discover where we are most susceptible to them. This course will explore the idealistic assumptions in the markets by bringing in the concepts of psychology, sociology, and behavioural finance to understand how the investor mind works in a broader societal setting. This will allow for better understanding of the investor's decision-making process. The aim is to introduce new theories of financial behaviour within (but complementing) the traditional analytical and quantitative methods of finance and hence a unique course which is interdisciplinary, encompassing areas such as financial economics and cognitive sciences with both experimental and theoretical components.