Syllabus

Course Code: FM-403    Course Name: Specialisation-A: FINANCE - Behavioral Finance

MODULE NO / UNIT COURSE SYLLABUS CONTENTS OF MODULE NOTES
1 Conceptual, theoretical foundations and evolution of behavioral finance, Nature and scope of behavioral finance, behavioral finance and conventional finance: A comparison.
Understanding Investor psychology: Beliefs, Attitude, Learning, Herding, Momentum, Biases and Heuristics, Over-confidence and optimism, winners’ curse, over reaction and under reaction and cross-cultural behavior.
Investor Preferences: Framing, Irrationality and violation of expected utility, mental accounting, Prospect theory and attention, Saving behavior.
Investment anomalies: Accounting based anomalies, Calendar anomalies, Attention based anomalies: Value v/s Growth, size, equity premium, myopia in investment decision making.
Behavioral Corporate Finance: Introduction, limits to Arbitrage, aggregation. Contemporary issues in Behavioral Finance.
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