Behavioural finance studies the biases and influences that affect the financial behaviours of investors and financial practitioners. Behavioural finance recognises our abilities to make difficult and complex financial decisions are limited due to the biases and errors of judgement to which humans are susceptible. Investors generally have limits to self-control, are not always rational and are influenced by their own biases. Understanding different types of biases can be valuable in studying market effects and outcomes.

In this programme, you will learn about the wide range of biases in decision making and information processing errors affecting judgments in finance. It examines cognitive biases, discusses the impact of biases on financial decision-making and explores the behaviour of investors, fund managers and corporate decision makers. It can be used to analyse market price levels and fluctuations for speculation as well as decision-making purposes.