Faculty of Business and Management Sciences · Business Administration · Undergraduate
Course Objective
The objective of this course is to familiarize students with the fundamental principles and theories of behavioral finance, facilitating their understanding of why individuals frequently make irrational financial decisions.
Course Content
In this course, we will examine the difference between traditional financial theories and the complexity of the real financial world. Throughout the course, we will discuss various heuristics and biases such as framing effect, ambiguity aversion, diversification heuristic, familiarity, and herding behavior. Using real-life examples, we will explore how psychological factors influence investment decisions, asset pricing, and market dynamics.
Course Learning Outcomes
- Students will acquire a foundational understanding of behavioral finance.
- Students will discuss common cognitive biases and heuristics affecting financial decision-making.
- Students will explain emotional dimensions of investment decisions.
- Students will discuss various market anomalies challenging traditional financial theories.