This course surveys finance topics where psychological factors influence security pricing and financial decisions. Much recent study contradicts the view of classical finance that incorporates fully rational and unemotional agents. This course presents situations in which behavioural biases lead to sub-optimal market outcomes. Students will gain a deeper understanding of state-of-the-art developments in behavioural finance and how they apply to practical settings in security analysis and portfolio selection.
Prerequisite: FINE 2000 3.0