The thoroughly revised 2nd edition of behavioural finance is designed as a textbook for students of MBA and CFA programme. It will also serve a reference book for investment practitioners and corporate finance executives. The book discusses financial decision-making and financial markets from the perspective of behavioural sciences and allied disciplines. It expounds theories of behavioural finance and explores ways and means of injecting greater rationality in financial and investment decisions making. Salient features: an overview of behavioural finance new and updated content in chapters 2-14 a new mini case on behavioural biases and asset allocation 16 New appendices such as expectations investing process, left brain, right stuff, and the paradox of choice.