Course - Behavioral Finance - FIN3502
Behavioral Finance
Lessons are not given in the academic year 2025/2026
About
About the course
Course content
In this course we will discuss typical mistakes that investors and managers make in their financial decisions and how they affect financial markets. We will study both the empirical evidence and theories grounded in psychology that help us understand why these mistakes occur. A unique feature of this class is that throughout the course we will run in-class experiments to provide direct evidence of how psychology affects financial decisions. Some of the topics we will discuss are:
- managerial overconfidence in M&As and investment decisions
- cognitive biases in trading and portfolio choice
- biases in expectations about asset market prices
Learning outcome
Knowledge
You learn
- About the behavioral biases that affect the corporate finance decisions of managers.
- About the behavioral biases that affect the portfolio decisions of investors.
- About the behavioral biases that affect the savings and borrowing decisions of households.
- About how individual behavioral biases affect stock markets and other asset markets.
Skills
You will know
- To measure biases and mistakes in financial decision-making.
- To evaluate interventions aimed at helping people make better financial decisions.
- To evaluate investment strategies that capitalize on financial market anomalies.
General skills
You will know
- To participate in public debates on finance using arguments based on economics and other social sciences.
- To conduct research in finance.
Learning methods and activities
2 hours of lectures every week. The course has compulsory activity. Specific requirements will be announced at the beginning of the term. The term papers can be written as a joint project.
Compulsory assignments
- Compulsory activity
Further on evaluation
Compulsory activity must be completed in the semester the course is taught. The approval also applies to later semesters.
Recommended previous knowledge
Compulsory courses in Master of Science in Financial Economics
Required previous knowledge
None
Course materials
Announced at the beginning of the term.
Subject areas
- Financial Economics
- Economics
- Social Sciences
Contact information
Department with academic responsibility
Examination
Examination
Ordinary examination - Autumn 2025
School exam
The specified room can be changed and the final location will be ready no later than 3 days before the exam. You can find your room location on Studentweb.