People have to make investment choices and decisions in their daily life. According to the rational choice theory, an individual always makes a rational and optimal choice among investment options. However, empirical studies in behavioural finance find that many people simply make irrational and suboptimal investment decisions. This course aims to provide the participants with the basic and practical knowledge in understanding the psychology of choice. It discusses the major psychological biases that compromise the optimal investment choice of an individual.
Examine the choice architecture which may manipulate how people make choices and can help to compensate for the impact of psychological biases in their decision-making process. The program outline will include:
• What is an Investment Choice?
• Rational Choice Theory to Investment
• Why People Make Suboptimal Investment Decisions
• Psychological Biases Leading to Deviation from Rational and Optimal Choices
• Choice Architecture to Compensate for Impact of Psychological Biases on Investment Decisions
Language: Cantonese supplemented with English
The learning outcomes of the program include:
• Understanding the Rational Choice Theory to Investment
• Examine Psychological Biases
• Gain insights on the choice architecture which may impact decisions
• Hear insights from the following subject matter expert:
Dr. M. K. Lai
Dr. M. K. Lai is the Principal Consultant of Executive Training and Management Consultancy Company Limited. Since 2000, he has been offering professional consulting services and quality training programs to many financial institutions, business firms, professional bodies and academic organizations. He obtained a doctorate in finance at the London Business School. He is a CFA charter holder and a Certified International Investment Analyst (CIIA). He has published a number of professional books and articles.
This program is suitable for accountants, auditors, finance professionals and anyone who is interested in enhancing their understanding of investment psychology.