REVA BUSINESS SCHOOL

Ph. D Course Work

Program Specific Course 4

This course work is designed for the research scholars who would like to pursue their Ph. D
in the discipline of finance.
Psychological Aspect of Investing
Guide: Dr. Narayanaswamy T
Scholar: Mr. Mahesh.N

Pre requisites:
Basic knowledge of investment to understand the theories in Behavioral Finance.
Course objectives:
1. To understand the difference between a behavioral finance perspective and traditional
finance perspective
2. To understand the awareness of decision errors and cognitive biases can help develop
better investors or financial managers
3. To understand critically the market efficiency and recent developments
Course outcomes:
At the end of the course, the research scholar will be able to
1. To analyze the difference between traditional finance and behavioral finance
2. To discuss the theoretical background making decisions of investors
3. To analyze the implications of investor behavior on analyzing the market indications
UNIT-I Over view of Investor psychology
Introduction-Formal overview of Investor psychology, Behavioral portfolio theory-
psychographic models
UNIT-II Behavioral foundation
Behavioral foundation –Role of behavioral antecedents, Role of emotions, mood, sentiments.
Emotional timeline: Emotions and role of Demographics, Role of Psychological Dispositions
UNIT-III Emotions and Decisions
Emotions and Decisions –Making: Experimental measurement of risk related-
Measuring risk- Emotional mechanisms in modulating risk –taking attitude-personality traits
UNIT-IV Behavioral aspects in Investing
Investing styles and Behavioral Finance: shadow of the past, strategies for overcoming
psychological biases

REFERENCES:

1. Behavioral Finance: “Psychology, Decision making and markets” by Ackert and Deaves
2. Scott Plous, (1993) The psychology of judgement and Decision making Mc Graw Gill
3. What investors really want- Learn the lessons of behavioral finance Meir Staman, Mc-
Graw - Hill
e) Assignment: (details of the assignment/s)

Assignments 1

Title Date of Marks

submission

Assignment 2

Title Date of Marks

submission