FINC 3002 Behavioural Finance
Credit Points 10
Legacy Code 200518
Coordinator Heath Spong Opens in new window
Description Traditional theories of finance are based the assumption that investors are both rational and utility maximizing. The Efficient Markets Hypothesis in particular has assumptions about investor behaviour which underpin its key predictions. The tenants of beharioural finance disputes the validity of these assumptions. This subject challenges traditional theory by examining how decision making and investor behaviour may be driven by personal and market psychology.
Discipline Banking, Finance And Related Fields
Student Contribution Band HECS Band 4 10cp
Check your fees via the Fees page.
Level Undergraduate Level 3 subject
Students should have at least an introductory finance background before entering into this subject.
- To understand traditional theories of financial asset pricing and investment decision making;
- To understand the implications of different assumptions about investor rationality and market psychology for taxation systems for asset pricing and investment decision making;
- To appreciate alternative theories of investor and market behaviour.
- The Psychology of investors
- Risk versus uncertainty
- The behaviour of finance markets ? non-normal distributions
- implications of investor irrationality for economics and The analysis of money