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Apr 19, 2024
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2021-2022 Hill Book (Class of 2025) [ARCHIVED HILL BOOK]
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BUS 433 - Topics in Behavioral FinanceFour Credits
Spring Semesters
This topics course is part two of the SCIFI course program and is available only to students admitted into the SCIFI program. The course is focused on the growing field of behavioral finance that uses insights from psychology to understand how human behavior influences the decisions of individual and professional investors, markets and managers. The topic is very useful in helping understand why investors make the choices they do. For example, why do people invest in local companies? Why do investors confuse a good company from a good stock? Why do people increase the amount of risk they are willing to take on if they have experienced good or bad portfolio performance? Similar questions will be explored to help explain why investment managers fall prey to behavioral errors. The course will start with a review of Utility theory, a model of how people should act, and later explore explanations for how and why they do act. Behavioral Finance is interdisciplinary as it borrows heavily from the academic literature in accounting, economics, statistics, psychology and sociology.
Prerequisite(s)/Restriction(s): BUS 432 .
Course Applies to: SCIFI Program
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