507436 - Behavioral Finance |
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Credit Hours3 Pre-requisite507211 Co-requisite- Distribution3+0 |
Behavioral Finance is considered by many to be one of the most important emerging topics in finance. The purpose of this course is to provide an understanding of the behavioral biases that individual's exhibit and the effects of these biases on financial markets domestically and internationally. Standard finance theory assumes that individuals such as investors or financial managers are rational expected utility maximizers. Behavioral finance argues that some financial phenomena can be better understood admitting that some investors are not fully rational and arbitrageurs have limits to how aggressively they could trade, and how this may affect the international and domestic markets. A number of stock market anomalies will be presented and analyzed. |