IOP3708 - Investor Psychology

Purpose: To introduce students to the recently developed field of investor psychology. Students will be exposed to the cognitive and emotional weaknesses of the efficient market hypothesis. Students will discuss and explain established key psychological terms, principles, concepts and theories that affect investment decisions taken by individual investors, analysts, strategists, brokers, portfolio managers, options traders, currency traders, futures traders and commentators. This unit is related to behavioural finance and deals with prospect theory, efficient market theory from a psychological perspective, heuristics and framing.