Overview
Provides insights from psychology to explain financial market behaviour. Provides hands-on experience using SAS, Bloomberg, and DataStream to examine the relationship between investors’ trading patterns and anomalous behaviour of asset prices.
Behavioural finance helps us understand the psychological factors that drive changes in market prices. Recent research shows that the majority of stock market anomalies are driven by investors’ behavioural biases. Almost all investment funds use behavioural finance theories to manage investments. For example, most factor-based investing (e.g., investing to capture momentum, high dividend yield, or small size premium risk factors) is linked to behavioural finance theories. Furthermore, several investment companies have launched specialised “behavioural funds”. Some of the largest behavioural funds are issued by JP Morgan and Fuller & Thaler Asset Management. Behavioural finance is also a significant component of all the CFA exams: Levels I, II, and III. Therefore, behavioural finance graduates are in high demand.
About this paper
| Paper title | Behavioural Finance |
|---|---|
| Subject | Finance |
| EFTS | 0.1667 |
| Points | 20 points |
| Teaching period | Semester 1 (On campus) |
| Domestic Tuition Fees ( NZD ) | $1,665.83 |
| International Tuition Fees | Tuition Fees for international students are elsewhere on this website. |
- Restriction
- FINC 444
- Notes
- May not be credited with FINC499 passed in 2022 or 2023
- Eligibility
Suitable for graduates and professionals of all disciplines interested in working with financial institutions.
- Contact
- Teaching staff
Co-ordinator & Lecturer: Dr. Muhammad A. Cheema
- Paper Structure
Lectures
Bloomberg Terminal Sessions
- Textbooks
Ackert, L & Deaves, R 2010, Behavioral Finance: Psychology, Decision-Making, and Markets, 1st edn, Cengage Learning.
- Course outline
- Graduate Attributes Emphasised
- Communication, Critical thinking, Information literacy, Teamwork.
View more information about Otago's graduate attributes. - Learning Outcomes
Students who successfully complete the paper will demonstrate in-depth understanding of how individuals make financial decisions and guidance on improving financial decision-making in themselves and others.
Overview
Provides insights from psychology to explain financial market behaviour. Provides hands-on experience using SAS, Bloomberg, and DataStream to examine the relationship between investors’ trading patterns and anomalous behaviour of asset prices.
Behavioural finance helps us understand the psychological factors that drive changes in market prices. Recent research shows that the majority of stock market anomalies are driven by investors’ behavioural biases. Almost all investment funds use behavioural finance theories to manage investments. For example, most factor-based investing (e.g., investing to capture momentum, high dividend yield, or small size premium risk factors) is linked to behavioural finance theories.
Furthermore, several investment companies have launched specialised “behavioural funds.” Some of the largest behavioural funds are issued by JP Morgan and Fuller & Thaler Asset Management. Behavioural finance is also a significant component of all the CFA exams: Levels I, II, and III. Therefore, behavioural finance graduates are in high demand.
About this paper
| Paper title | Behavioural Finance |
|---|---|
| Subject | Finance |
| EFTS | 0.1667 |
| Points | 20 points |
| Teaching period | Semester 1 (On campus) |
| Domestic Tuition Fees | Tuition Fees for 2027 have not yet been set |
| International Tuition Fees | Tuition Fees for international students are elsewhere on this website. |
- Restriction
- FINC 444
- Notes
- May not be credited with FINC499 passed in 2022 or 2023
- Eligibility
Suitable for graduates and professionals of all disciplines interested in working with financial institutions.
- Contact
- Teaching staff
Co-ordinator and Lecturer: Dr. Muhammad A. Cheema
- Paper Structure
This course comprises lectures and Bloomberg Terminal sessions.
- Textbooks
Ackert, L. & Deaves, R. (2009). Behavioral Finance: Psychology, Decision-Making, and Markets (1st ed.). Cengage.
- Graduate Attributes Emphasised
- Communication, Critical thinking, Information literacy, Teamwork.
View more information about Otago's graduate attributes. - Learning Outcomes
Students who successfully complete the paper will demonstrate in-depth understanding of how individuals make financial decisions and guidance on improving financial decision-making in themselves and others.