Finance and Behavioural Bias
Duration:
1 Teaching Period
Unit Code:
FIN20017
Contact Hours:
Recommended 8 hours of study per week
About this unit
This unit aims to provide students with the knowledge of behavioural attributes underlying human decision-making, and how these attributes impact financial decision-making. The unit broadens students’ understanding of the investor’s mind and client’s behaviour when obtaining financial advice. In this unit, the roles of behavioural biases, ethical principles, and legislative requirements in building a long-term client-advisor relationship are discussed and the professional skills and knowledge required for the development of financial strategies that meet the client’s best interest are practiced. This unit further provides an understanding of the fundamental financial techniques that assist in the evaluation of financial products such as shares and bonds.
Content
- Time value of money
- Net present value and investment evaluation methods
- Knowing self and others
- Market and investor behaviour
- Risk profiling
- Constructing advice
- Client engagement
- Professional relationship building
- Financial advice legislative requirements.