The course has been designed to provide the students with a theoretical and practical understanding of behavioral finance. This course will leverage insights from psychology and behavioral economics within a realistic economic setting to study alternative theories of financial market behavior. The course is designed to provide an overview of an exciting, new, and fast-growing area in finance, which takes as its premise that investment decision-making and investor behavior are not necessarily driven by 'rational' considerations but by aspects of personal and market psychology. Behavioral finance recognizes that our ability to make complex financial decisions is limited due to the biases and errors of judgement to which all of us are prone. This course introduces cognitive biases, discusses their impact on financial decision-making, and explores the behaviour of individual investors and corporate managers. The course aims to examine how insights from behavioural finance shed light on the behaviour of individual investors and finance professionals in investment and corporate financial decision-making.
- Teacher: RAVI RAUSHAN JHA