Behavioural Finance

Course aim

To introduce students to behavioural theories of finance and financial decision-making and compare and contrast rational and behavioural theories of finance and financial decision-making. To extend students’ knowledge of finance by demonstrating how “real” investors and markets do not always correspond to the "rational agents" and outcomes described in standard finance courses.

Course content

Behavioural finance and the psychology of finance; behavioural foundations; biases; heuristics; framing effects; interaction of behavioural biases and corporate investment and other corporate finance and investment decisions; implications for market efficiency and decision-making; overcoming biases in corporate finance and investment decisions; case studies.

Textbook(s)

Ackert, L & Deaves, R 2010, Behavioral Finance: Psychology, Decision-Making, and Markets, 1st edn, Cengage Learning

Prerequisite(s)

Subject Area & Catalogue Number	Course Name
Group 1
BUSS 5233	Corporate Finance
Group 2
BUSS 5249	Managerial Finance

Corequisite(s)

Nil

Teaching method

Component	Duration
INTERNAL, CITY WEST (INTENSIVE)
Seminar	30 hours x N/A
INTERNAL, CITY WEST
Preparatory	1 x 1 week
Seminar	3 hours x 10 weeks
EXTERNAL, CITY WEST, ONLINE
Online	30 hours x N/A

Note: These components may or may not be scheduled in every study period. Please refer to the timetable for further details.

Assessment

Continuous assessment, Essay, Team presentation

Fees

EFTSL*: 0.125
Commonwealth Supported program (Band 4C)
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Fee-paying program for domestic and international students
International students and students undertaking this course as part of a postgraduate fee paying program must refer to the relevant program home page to determine the cost for undertaking this course.

Non-award enrolment
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* Equivalent Full Time Study Load. Please note: all EFTSL values are published and calculated at ten decimal places. Values are displayed to three decimal places for ease of interpretation.