Hong Kong: Module 2C

Catalog description

A growing strand of research suggests that the standard economic paradigm - rational investors in an efficient market - does not adequately describe behavior in financial markets. Behavioral finance combines the latest findings of behavioral and cognitive psychological theory with conventional economics and finance to provide alternative explanations of financial market behavior. We will examine how psychology of decision making under conditions of risk and uncertainty affects the traditional paradigm, while paying attention to practical applications for portfolio and investment management.