FIN355 Behavioral Finance Bachelor (Spring Semester 2014)

 


Contents:

Much of modern financial economics works with models in which agents are rational and arbitrageurs can fix any  mispricing. Behavioral Financial Economics is the area of finance which relaxes both of these assumptions. Behavioral models have two building blocks: limits to arbitrage, which is something that makes it difficult for rational traders to undo the dislocations caused by less rational traders; and psychology, which catalogues the kinds of deviations from full rationality we might expect to see. We discuss these two topics, and then consider a number of applications such as individual investor portfolio choice, cross-section of average returns and behavioral corporate finance.

Learning objectives:

  • By the end of the course students will learn about types of limits to arbitrage; psychological aspects of decision-making relevant to finance; common "puzzles" in financial markets and the behavioral approach to explaining those puzzles.

Requirements:  Students should have taken introductory courses in Finance.

Further Details:

LecturersProf. Dmitry Shapiro
LocationO48-50
Time

see below

 

Language of InstructionEnglish
ECTS6
Course starts on17 February 2014

 

 

Schedule: 

DateTime
17.02.201413:45-17:00
18.02.201408:30-10:00
18.02.201413:45-15:15
20.02.201413:45-17:00
24.02.201413:45-17:00
25.02.201413:45-17:00
27.02.201410:15-11:45 (in Room M003)