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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