Fundamentals of Behavioral Finance

Catalog description

The standard approach in finance theory is based on the assumption of rational and unemotional economic agents. However, the anomalies in the financial markets have shown evidence to the contrary. The course examines how the insights of behavioral finance complement the traditional finance paradigm and shed light on investors' trading patterns, the often anomalous behavior of asset prices, and various Wall Street institutions and practices impacting both firms and individual consumers. Prerequisites: FIN400. Crosslisted with: FIN 560 .