DE / EN

FIN 620 Behavioral Finance

FSS 2022

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 Lecture17.02.2022;  08:30 a.m. – 11:45 a.m.
End Lecture07.04.2022
Begin Exercise02.03.2022
End Exercise27.04.2022
Exam11.05.2022

Contact

Jan Lukas Mertes, M.Phil.

Jan Lukas Mertes, M.Phil.

 

 

University of Mannheim
L 9, 1–2 – Raum 208
68161 Mannheim
Consultation hour(s):
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.