course-details-portlet

FIN3502

Behavioral Finance

Lessons are not given in the academic year 2025/2026

Credits 7.5
Level Second degree level
Language of instruction English
Location Trondheim
Examination arrangement School exam

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.

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

Department of Economics

Examination

Examination

Examination arrangement: School exam
Grade: Letter grades

Ordinary examination - Autumn 2025

School exam
Weighting 100/100 Examination aids Code H Date 2025-11-20 Time 09:00 Duration 4 hours Exam system Inspera Assessment
Place and room for 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.

Sluppenvegen 14
Room SL310 turkis sone
6 candidates