A Brief Analysis of Two Opposing Sides – Traditional Finance vs Behavioural Finance

In this thesis I will explore the main theories of two “opposing” sides. The first one is the one that is studied more and thought of as the traditional side of finance, whereas the second part will evolve over a less studied and maybe less reviewed view on finance. The approach I will take will be the most linear and easy to follow approach possible, in order to explore and get a general understanding of the main key elements and differences of the two frameworks. In each part, the first chapter will be devoted to the main theory that is viewed as the founding pillar of the subject. Then the focus will shift to the different asset pricing and portfolio theories. And lastly, following the description of the main features of the opposing views on finance, I will present a brief collection of the principle critiques on the frameworks.