The topics are similar as in ECOM038, but may be covered at a more challenging level. Behavioural Finance studies irrationalities in savings and investment decisions as well as puzzles on financial markets. Some key topics are saving for retirement, insurance, predictability of returns, and bubbles.
Knowledge of Behavioural Finance provides students with a deeper and more realistic understanding of finance than is offered by the mainstream approach alone. Such knowledge will hopefully make students less susceptible to common mistakes when they make financial decisions in their personal or professional lives.