course-details-portlet

FIN3502 - Behavioral Finance

About

New from the academic year 2023/2024

Examination arrangement

Examination arrangement: School exam
Grade: Letter grades

Evaluation Weighting Duration Grade deviation Examination aids
School exam 100/100 4 hours D

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

Required previous knowledge

None

Course materials

Announced at the beginning of the term.

More on the course

No

Facts

Version: 1
Credits:  7.5 SP
Study level: Second degree level

Coursework

Term no.: 1
Teaching semester:  AUTUMN 2023

Language of instruction: English

Location: Trondheim

Subject area(s)
  • Financial Economics
  • Economics
  • Social Sciences
Contact information
Course coordinator:

Department with academic responsibility
Department of Economics

Examination

Examination arrangement: School exam

Term Status code Evaluation Weighting Examination aids Date Time Examination system Room *
Autumn ORD School exam 100/100 D 2023-12-20 15:00 INSPERA
Room Building Number of candidates
SL310 hvit sone Sluppenvegen 14 35
Spring ORD School exam 100/100 D 2024-06-05 15:00 INSPERA
Room Building Number of candidates
SL311 Sluppenvegen 14 1
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
Examination

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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