Behavioural Finance

                                                                                                                                                                 SyllabuS

                           FM-403: BEHAVIOURAL FINANCE

Course Contents:

Introduction: Meaning, Nature, Scope and History of Behavioural Finance. Comparison Between Behavioural Finance and Conventional Finance. Expected Utility, Non-Expected Utility and classical

Probability Theory: An Overview. Psychology of Investor’s: Beliefs, Attitude, Learning, Herding, Momentum, Biases and Heuristics, Over-confidence and optimism, winner’s curse, Bubbles, advertising to investor’s, Over Reaction and Under Reaction and Cross-Cultural Behavior.

Preferences: Framing, Prospect Theory and Violation of Expected Utility, Mental Accounting, Prospect Theory and Attention, Saving Behavior.

Anomalies: Accounting Based Anomalies, Calendar Anomalies, Attention based anomalies: Value v/s Growth, Size, Equity Premium, Myopia. 

Behavioural Corporate Finance: Introduction, limits of Arbitrage, Aggregation. Contemporary Issues in Behavioural Finance.