BEHAVIOURAL FINANCE

FIN5BEF

Not currently offered

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

Available as ElectiveYes

Learning ActivitiesSeminars will cover key concepts to be applied in individual continuous assessment tasks and the final examination

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

Readings

The Psychology of Investing

Resource TypePrescribed

Resource RequirementN/A

AuthorNofsinger, John R

Year2014

Edition/Volume6th edn

PublisherPearson Education, New Jersey

ISBN9780130930248

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

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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