Behavioural Finance and Investment
Overview
This unit provides students with knowledge of the financial system, various regulatory bodies, key participants and potential risks in the financial markets. This unit focuses on the understanding and the application of the modern finance theories including various asset pricing models, modern portfolio theory, market efficiency and behavioural finance, and how these theories influence investment planning strategies. Students will learn to construct and defend a multi-asset portfolio that satisfies client’s objectives and constraints based on their financial literary and behavioural biases. Students will apply investment and behavioural finance knowledge to generate financial planning strategies using advice technologies.
Requisites
Learning outcomes
Students who successfully complete this unit will be able to:
- Critically evaluate the role of the financial system and the various regulatory bodies and their functions in order to identify potential risks and formulate solutions for investment decisions
- Critically analyse investment opportunities in various financial markets and assess the characteristics of traded instruments while considering the ethical principles and code of conducts on these markets
- Critically analyse modern finance theories and cognitive and behavioral patterns in order to determine their impacts on investment decisions.
- Apply coherent and advanced knowledge of investment and behavoural finance and recommend strategies and products that meet client's objectives and constraints based on their financial literacy
- Communicate proficiently and in a professional context and work effectively as a member of a team
Teaching methods
Hawthorn
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| On-campus Class | 2.00 | 12 weeks | 24 |
| Unspecified Activities Independent Learning | 9.50 | 12 weeks | 114 |
| Online Lecture | 1.00 | 12 weeks | 12 |
| TOTAL | 150 |
Swinburne Online
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| Online Directed Online Learning and Independent Learning | 12.50 | 12 weeks | 150 |
| TOTAL | 150 |
Assessment
| Type | Task | Weighting | ULO's |
|---|---|---|---|
| Assessment | Individual | 40 - 60% | 1,2,3,4 |
| Assignment | Group | 30 - 40% | 2,3,4,5 |
| In-Class Exercises | Individual | 10 - 20% | 1,2,3,4 |
Content
- Financial systems and regulatory bodies
- Investment markets
- Equity markets
- Debt markets
- Market efficiency
- Behavioural finance
- Financial literacy
- Client engagement and relationship
- Portfolio theory and construction
- Portfolio risk management
- Managed funds
- Regulation of markets
- Investment structures and products
- Financial technologies
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.