FULLY SOLVED BOOK LASY 5 YEARS PAPERS SOLVED PLUS GUESS

Behavioural Finance

Unit I
Foundations of Behavioural Finance: Definition, behavioural finance micro and behavioural finance macro, important contributors, components, difference with standard finance; Market efficiency and anomalies; Expected Utility Theory; Agency theory; Limits to Arbitrage; Prospect theory, basicframework; Loss Aversion, model of loss aversion; Gambler fallacy, hot hand fallacy. (10 Hours)
Unit II
Investor Behaviour: Types of investors, objectives of investment, factors influencing Investor decision making, factors influencing investor personality, characteristics of successful investors; Risk Attitude, types of risk, standard finance view of risk, behavioural finance viewpoint of risk, risk perception, factors affecting risk attitude; Investor Personality, tools, investor models, contrarian investor, examples, strategies. (10 Hours)
Unit III
Behavioural Biases and Irrational Investing: Heuristics and Biases, representativeness heuristic, availability heuristic, affect heuristic, similarity heuristic; Cognitive and Emotional Biases, overconfidence bias, cognitive dissonance bias, self attribution bias, illusion of control bias, conservatism bias, ambiguity aversion bias, endowment bias, self control bias, optimism bias, mental accounting bias, confirmation bias, hindsight bias, recency bias, regret aversion bias, status quo bias,
Strategies to Overcome Biases; Over Reaction and Optimism; Herding Behaviour and Mean Reversal.
(11 Hours)
Unit IV
Recent Advances in Behavioural Finance: Neuro Finance, human brain, brain secretions, neurotechnology; Noise Trading, Behavioural Capital Asset Pricing Model, Behavioural Portfolio Theory, investor sentiments; Conflict of Interest and Group Psychology on Board, contract theory, corporate governance, strategies, Case Study- Tata-Mistry Case, Infosys case, Satyam case