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2014/2015  DIP-DFIRV1004U  Behavioural Finance

English Title
Behavioural Finance

Course information

Language English
Course ECTS 5 ECTS
Type Elective
Level Graduate Diploma
Duration One Semester
Course period Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Graduate Diploma in Business Administration
Course coordinator
  • Nigel Jones Barradale - Department of Finance (FI)
Main academic disciplines
  • Finance
Last updated on 30-04-2014
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:
Exam ECTS 5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period December/January
Aids allowed to bring to the exam Closed Book: no aids
Make-up exam/re-exam
Another examination form
I tilfælde af syge-/omprøve kan denne afholdes som 20 min. mundtlig stedprøve, såfremt underviser og studiekoordinator vurderer, at dette er mest hensigtsmæssigt, fx fordi der kun er få tilmeldte.
Course content and structure
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.
Last updated on 30-04-2014