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  • Q1
    How does this book align with the MBA Semester IV curriculum?
    A1

    It is meticulously designed to meet the academic requirements of PTU's MBA Semester IV syllabus, covering essential theories, concepts, and applications relevant to behavioral finance.

  • Q2
    What are the key features of this book?
    A2

    Key features include structured content, theoretical and practical insights, case studies, model papers for exam preparation, and clear explanations of complex concepts.

  • Q3
    How do the case studies in the book enhance student learning?
    A3

    The case studies provide real-world examples of behavioral finance principles in action, allowing students to apply theoretical concepts to practical scenarios in financial markets.

  • Q4
    Are there model papers included for exam preparation?
    A4

    Yes, the book provides model question papers, which are designed to help students assess their understanding and effectively prepare for university exams.

  • Q5
    Does this book cover both theoretical concepts and practical applications?
    A5

    Absolutely! It combines foundational theories with real-world case studies, investor biases, and market anomalies.

  • Q6
    Who are the authors, and what is their expertise in behavioral finance?
    A6

    Dr. Saroj Kumar and Priyanka Singh are experienced academicians with deep knowledge of behavioral finance and investor psychology.

  • Q7
    Does the book include model question papers for exam preparation?
    A7

    Yes, it features model papers to help students prepare effectively for university exams.

  • Q8
    Are there case studies included in the book?
    A8

    Yes, real-world case studies help bridge the gap between theory and practical financial decision-making

  • Q9
    What study strategies are recommended for using this book effectively?
    A9

    Students should engage in active reading, summarize key points, utilize case studies for practical application, and practice with model papers to reinforce their understanding.

  • Q10
    Are there discussions about the implications of behavioral finance in corporate finance?
    A10

    Yes, the book explores how investor sentiment and behavior affect corporate finance decisions, providing insights into how firms can navigate market psychology.

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Unit 1 : Introduction to Behavioural Finance
Unit 2 : Behavioural Aspects of Investing
Unit 3 : Investor Behaviour and Bubbles
Unit 4 : Investor Sentiment & Behaviour Corporate Finance
Case Studies 
Model papers
MBA 913-18 Behavioural Finance

Course Objective: The primary objective of the course is to make the students understand how behavioural bias affects the classical financial theory.

Course Outcomes: After studying this course, the students should be able to:
CO1: Understand and differentiate between different theories of behavioural finance.
CO2: Examine the concepts of bounded rationality.
CO3: Discuss various anomalies in the market giving rise to behavioural bias.
CO4: Describe the basis of behavioural bias of professional investors trading in market.
CO5: Understand the concept of market efficiency and will be able to relate it with the concept of behavioural finance.
CO6: Describe the challenges to the efficient market hypothesis.

Unit I
Introduction: Meaning, features and scope of behavioural finance. Rational Expectations Paradigm and the Behavioural Challenge Theories of Behavioural Finance: Agency theory, Prospect theory, Reasoned emotions; Overreaction and optimism, Rationality to psychology, Neo-classical finance and Efficient Market Hypothesis

Unit II
BEHAVIOURAL ASPECTS OF INVESTING: Heuristics and Biases, Self-deception, Emotional Factors and Social Forces and Neuro scientific and Biological Perspective, Small / Medium / Large firm effect, Momentum Vs Reversal, Noise trader risk in financial market, Attitude to risk, Expected utility, Mental accounting, Over confidence, Emotion and reasoning, Excessive risk taking, Behavioural explanation for anomalies, Excessive volatility, Loss aversion, Gamblers’ fallacy

Unit III
Investor behaviour: Types of investors – on the basis of risk appetite and investment exposure, Conformity, Contrarian investing, Social forces selfishness or altruism, Group psychology on Board, Resistance to recognising failure, Conflict of interest. Value investing and growth investing. Stock market bubbles.

Unit IV
Model of Investor Sentiment :  Market Efficiency and Biases in Brokerage Recommendations Evidence on the Characteristics of Cross-sectional Variation in Stock Returns Behavioural Corporate Finance and Wisdom from Other Sources

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