fin5bef behavioural finance

BEHAVIOURAL FINANCE

FIN5BEF

2020

Credit points: 15

Subject outline

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.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorPetko Kalev

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsNo

Available as ElectiveNo

Learning ActivitiesN/A

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A

Learning resources

The Psychology of Investing

Resource TypeBook

Resource RequirementPrescribed

AuthorNofsinger, John R

Year2014

Edition/Volume5th edn

PublisherPearson Education, New Jersey

ISBNN/A

Chapter/article titleN/A

Chapter/issueN/A

URLN/A

Other descriptionN/A

Source locationN/A

Career Ready

Career-focusedNo

Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

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

Intended Learning Outcomes

01. Critically identify the behavioural biases, heuristics and framing effects that present obstacles to maximising the value derived from corporate financial and investment decisions.

02. Critically assess and analyse how individual financial decision making and behaviour affect investment outcomes in financial markets.

03. 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.

04. 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.

Subject options

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Melbourne (Bundoora), 2020, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment informationN/A

Subject Instance Co-ordinatorPetko Kalev

Class requirements

Block ModeWeek: 11 - 18
Six 6.00 hours block mode per study period on weekends during the day from week 11 to week 18 and delivered via face-to-face.
Delivered on Saturday and Sunday on the following dates: 16 & 17 March, 30 and 31 March, and 4 and 5 May.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
Group Assignment and Group Presentation Written (20%), Presentation (10%) Total equivalent to 2000 words per student	N/A	N/A	N/A	No	30	SILO1
Individual Continuous Assessment, equivalent to 1,500 words per student This will include various activities, including analysis of market trading activity and outcomes, reporting and interpreting empirical research results from academic papers, and critiques / reviews of academic papers.	N/A	N/A	N/A	No	20	SILO2, SILO3, SILO4
3-hour final examination (equivalent to 3000 words) Comprise a mix of short-answer analytical, problem-solving and interpretative questions.	N/A	N/A	N/A	No	50	SILO3, SILO4