FIN 620 Behavioral Finance
FSS 2024
Faculty | Prof. Dr. Dr. h.c. Martin Weber |
|---|---|
Lecture and Exercise | |
Credits | 6 ECTS |
Language | English |
Exam | written exam (100 %) |
Infos for students | Registration is via Portal 2 |
| Begin Lecture | 15.02.2024; 08:30 a.m. – 11:45 a.m. |
| End Lecture | 21.03.2024 |
| Begin Exercise | 21.02.2024 |
| End Exercise | 24.04.2024 |
| Exam | 08.05.2024 |
Contact
Monika Burckhardt, M.Sc.
L 9, 1–2 – Raum 209
68161 Mannheim
by appointment
Contents
There is abundant evidence suggesting that the standard economic paradigm of rational investors does not adequately describe behavior in financial markets. Behavioral Finance examines how individuals' attitudes and behavior affect their financial decisions. This course reviews recent research on possible mispricing in financial markets due to the nature of psychological biases. Moreover the course deals with behavioral finance models explaining investor behavior or market anomalies when rational models provide no sufficient explanations. Topics will include among others overconfidence, prospect theory, heuristic driven biases and frame dependence.
Learning Outcomes
Behavioral finance applies scientific research on human and social cognitive and emotional biases. After completing this course, students will be able to better understand economic decisions and how they affect market prices and returns. They will know how behavioral findings are integrated with neoclassical theory.