FIN 620 Behavioral Finance

FSS 2020


Prof. Dr. Dr. h.c. Martin Weber


Lecture and Exercise






written exam (100 %)

Infos for students

Registration is via Portal 2

Begin Lecture20.02.2020 um 08:30 - 11:45 Uhr  in O 131
End Lecture26.03.2020
Begin Exercise19.02.2020
End Exercise22.04.2020
Exam30.04.2020  08:30 - 10:00 Uhr in SN 163


Sabine Bernard

Sabine Bernard

For questions or further information, please contact  Sanbine Bernard oder Pascal Kieren



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.