Behavioural Finance
Examine the psychological, social, cognitive and emotional factors in investment
Type
Domain
Competency Area
Investment and Financial Management
Levels
Analyse impact of emotional and behavioural biases
Analyse characteristics of traditional finance and behavioural finance decisions to yield better insights and improve decision making
Analyse portfolio construction, and investors’ behaviour decisions in line with emotional and behavioural biases
Research individuals’ behavioural and emotional biases to determine potential effects on investment decisions
Utilise theories of investment to examine investors’ behaviours
Mitigate the effects of emotional and behavioural biases
Monitoring the effect of behavioural and emotional biases on investment decisions
Develop approaches to mitigate the effects of behavioural biases on investment policy and asset allocation decisions
Evaluate effects of bounded rationality on decision-making
Classify investors according to personality types
Review the effectiveness of mitigation methods
Review the accuracy of identification and analysis of behavioural and emotional biases and their effects on investors’ decision- making
Review and ensure effectiveness of methods proposed to mitigate effects of biases for investors
Review personality type classification for investors