2012/2013  DIP-VHF5  Behavioural Finance

English Title

Behavioural Finance

Course information
Language	English
Exam ECTS	5 ECTS
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.

Examination

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.