IBF621 Behavioral Finance

Behavioral finance uses insights from psychology to understand how human behaviors influence the decisions of individual investors, markets, and managers. This course (1) describes how individuals and firms make financial decisions, and how those decisions might deviate from those predicted by traditional financial or economic theories; (2) explores the existence of psychological biases in financial decision-making, and examines the impacts of these biases in financial markets and other financial settings; (3) discusses how the insights of behavioral finance complement the traditional finance paradigm.

Pre-requisite: IBF505 Investment Theory and Applications or equivalent