Behavioural Finance

MBA (18MBA402B)

Module-I

Nature, Scope and Significance Behavioural Finance, Market Strategies, Expected Utility Theory, Risk Attitude, Allais paradox. Building Blocks.

Module-II

Prospect Theory. Framing and Mental Accounting, Rationality in investment decision, Ellsberg’s paradoxes, Investors sentiments and Bubble creation.

Module-III

Heuristics and Biases; Overconfidence, Fear and Greed in Financial Market, emotions and financial markets, statistical methodology for capturing the effects of external influence onto stock market returns. Behavioural Corporate Finance.