Behavioural Finance

Module code: MN7380

Module Outline

This module will analyse the competing paradigms of the Efficient Market Hypothesis and Behavioural Finance. It will also explain the differences among a range of systematic biases in decision-making of investors and link these to underlying psychological processes. By the end of this module you should be able to demonstrate that such biases give rise to anomalies in the asset price formation process and how strategies can be designed to exploit the anomalies.