Behavioural Finance

The aim of this course is to cover a modern approach to financial markets with tools from psychology and human behaviour. This new approach to the behaviour of markets based on the human factor complements the existing theories to explain financial and capital markets. On completing the course the participants shall understand the basics of behavioural finance and the roles of securities prices in the economy, while they shall also comprehend the role of psychology on financial markets and investor behaviour. Students understandings will be also expand on topics related to the return predictability mechanism for various financial instruments and the role of arbitrageurs in financial markets.