Behavioral Finance ((4 Credits))

Catalog description

This course is the study of how our choices and financial decisions are influenced by surrounding environment and bias that is based on our psychological and social foundations, framing of alternatives, anchoring trust, social norms of fairness and mistakes in probabilistic judgement. It examines the predictable factors and errors that can be avoided to guide decision-makers in making better financial choices in future investing, spending and saving decision in personal finance, corporate finance.  It investigates the traditional financial theory, alongside main stream economic theory, assuming that individuals target utility maximization, intelligent and rational decision makers.  Students will also learn how behavioral biases influence ethical decision making. Behavioral Economics provides a more general introduction to the influence of psychology on economic theory, and covers a wider range of market phenomena and theoretical approaches. Behavioral Finance is much more focused on financial decisions, and on challenging the established theoretical precepts of financial economics. This course is offered for our International Education program students.