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2012/2013  DIP-VHF5  Behavioural Finance

English Title
Behavioural Finance

Course information

Language English
Type Elective
Level Graduate Diploma
Duration One Semester
Course period Autumn
Time Table Please see course schedule at e-Campus
Study board
Study Board for Graduate Diploma in Business Administration
Course coordinator
  • Nigel Jones Barradale - Department of Finance
Main Category of the Course
  • Finance
Last updated on 21-09-2012
Learning objectives
To attain the top grade, students are required to have a good understanding of the major concepts and issues in behavioral finance. This includes the ability to:

- Identify and apply psychological concepts to financial markets and financial decision-making.

- Compare and contrast behavioral and non-behavioral explanations of financial phenomena.

- Apply the psychological and behavioral finance concepts to new problems outside the finance discipline.

The course will provide students with an understanding of how human psychology leads to biases and mistakes in the financial decisions of others and potentially of themselves. Through an awareness of these biases and mistakes, students will be better able to mitigate them as finance industry professionals, managers in non-financial firms, and investors of their own money.
Behavioural Finance:
Type of test Written Exam
Marking scale 7-step scale
Second examiner No second examiner
Exam period December/January
Aids Closed Book
Duration 4 Hours
Course content
40 hours of lectures covering the following topics:

- Overconfidence and bubbles
- Bubbles and market efficiency
- Overconfidence and Financial Decision Making
- Risk Preferences, Framing and Mental Accounting
- Emotions
- Stock Market Effects
- Heuristics, Biases and Financial Decision Making
- Individual Stock Effects
- Time Preference
- Personal Financial Planning
- Social Forces
- Corporate Finance
- Case Study: The Financial Crisis
Teaching methods
The course is conducted in English. The teaching is interactive and students are expected to participate in class discussions and short experiments.
Last updated on 21-09-2012