Behavioral Finance

1.5 units

The course will cover topics in behavioral finance, a field of finance that applies psychology to the decisions of investors and corporate managers. Topics covered include prospect theory and non-expected utility preferences, behavioral biases and heuristics, limits to arbitrage, anomalies and their behavioral explanations, bubbles and their behavioral explanations, behavioral biases of individual vs. professional traders, and behavioral corporate finance. The course will cover theoretical aspects, empirical and experimental evidence, and practical implications. Students may not earn credit in both FIN 5505 and FIN 6505.