Psychology of Investing & Financial Decisions
Elective ModulesGain a very practical overview of the exciting and high profile new area that is behavioural finance. Behavioural science studies how humans make decisions, and seeks to improve decision-making by recognising the underlying psychological processes at work. It is useful for many areas of business.
In this module you will look specifically at it in relation to finance and consider how financial decision-making and investor behaviours are not necessarily driven by rational considerations but by aspects of personal and market psychology. Explore how to improve performance, as a financial manager and investor, by recognising and dealing with the biases and errors of judgement to which all of us are prone.
The module is deliberately conceptual and reflective and will draw on your own experiences. There is no mathematical analysis involved.
By the end of this module you will have explored:
- How (financial) judgements are made and how they can be improved
- How you can exploit this understanding
- How you can improve our stock and investment fund selection decisions
- Why investors and CEOs are so overconfident in their judgements
- Why investment analyst buy and sell recommendations are so fallible
- Why fund managers find it so difficult to beat the market
There are other elective modules available in this field.