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2015/2016  DIP-DFIRV1004U  Behavioural Finance

English Title
Behavioural Finance

Course information
Language English
Course ECTS 5 ECTS
Type Elective
Level Graduate Diploma
Duration One Semester
Start time of the course 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)
Contact information: hdfr@cbs.dk
Main academic disciplines
  • Finance
Last updated on 18-03-2015
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: 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:
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 Winter
Aids allowed to bring to the exam Limited aids, see the list below:
  • Written sit-in-exam on CBS' computers
  • Allowed dictionaries
  • Allowed calculators
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. The objective of the course “Behavioural Finance” is to provide students with a broad understanding of how human psychology affects financial decisions, with specific reference to the impact on financial markets, corporate finance, and personal financial decisions.

There are two sides to the course. The "soft" side concerns the psychology of decision making. The "hard" side concerns modern empirical finance, as used in many hedge fund strategies, for example. The teaching of both sides focuses more on intuition and understanding rather than technical skills. The teaching is research-based, drawing on findings from the current academic literature, and covers a large quantity of material.
Teaching methods
The course is conducted in English. The teaching is interactive and students are expected to participate in class discussions.
Last updated on 18-03-2015