435 Behavioral Finance
Finance
Approved course information last updated: 1 month, 3 weeks ago
Pre-requisites: FIN 320
Requisite To: None
Lab Session:
Course Description
The course will examine the key psychological obstacles to value maximizing behavior, along with the steps that managers can take to mitigate the effects of these obstacles. The principles of psychology are used to analyze valuation, capital budgeting, perceptions of risk and return and other issues.
Course Learning Objectives (CLOs)
- Recognize the various heuristics and biases that predictably influence our financial decision-making abilities
- Use mean-variance optimization and value-at-risk analysis to examine risk and return of a portfolio in both the traditional and behavioral methods.
- Start recognizing behavioral patterns that may lead to profitable trading strategies.
- Present and discuss new strategies or behavioral experiments and any associated analyses performed to a wider audience
- Distinguish between unfavorable emergent behavioral phenomenon and conscious fraudulent decisions in the financial domain.
Syllabus History