Behavioural Finance (MBA)

Psychological biases and heuristics of investors and their effect on financial markets and decisions.

6 MonthsDuration 5Chapters25Topics

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Syllabus · पाठ्यक्रम

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01Unit 1: Introduction to Behavioural Finance 4 topics

Traditional finance: rational investor and efficient markets
Meaning and scope of behavioural finance
Bounded rationality (Herbert Simon)
Expected utility theory and its limits

02Unit 2: Prospect Theory & Mental Accounting 4 topics

Prospect theory (Kahneman and Tversky)
Value function and loss aversion
Framing effect
Mental accounting (Richard Thaler)

03Unit 3: Heuristics & Cognitive Biases 6 topics

Representativeness
Availability
Anchoring and adjustment
Overconfidence and illusion of control
Confirmation and hindsight bias
Familiarity and home bias

04Unit 4: Emotional & Social Biases 5 topics

Herding behaviour
Regret aversion
Disposition effect
Endowment effect and status quo bias
Self-control bias

05Unit 5: Market Anomalies & Applications 6 topics

Calendar anomalies: January and weekend effects
Momentum and reversal
Bubbles and crashes
Limits to arbitrage and noise traders
Nudges and behavioural corporate finance
Debiasing investors

About

You will be able to

Contrast traditional finance assumptions with behavioural finance
Explain prospect theory, loss aversion, framing and mental accounting
Identify heuristics and cognitive biases such as anchoring, availability, representativeness and overconfidence
Explain emotional and social biases: herding, regret aversion, disposition and endowment effects
Discuss market anomalies, bubbles and limits to arbitrage
Apply behavioural insights to investment advice and corporate decisions

Who it is for

MBA students of Semester 4 (AKTU) - Finance specialisation
Students aiming at wealth management, financial advisory and investment roles

What you need

Investment Analysis & Portfolio Management (Semester 3) completed
Interest in investor psychology

Questions

Which syllabus is followed?

The AKTU (Dr. A.P.J. Abdul Kalam Technical University, Lucknow) MBA syllabus of Behavioural Finance (Semester 4). If your own university's syllabus differs, the centre follows your university syllabus and units.

Is this subject mostly theory?

It is concept-based, but every bias is explained with real investor and market examples and short case questions.

How will I be tested?

Unit-wise MCQ tests and a final paper at semester level, plus practice on short and long answer questions from previous university papers.