040018 KU Advanced BA/CF/FM: Behavioural Finance (MA) (2019S)

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften

Continuous assessment of course work

Moodle

Registration/Deregistration

Note: The time of your registration within the registration period has no effect on the allocation of places (no first come, first served).

Registration is open from Mo 11.02.2019 09:00 to We 20.02.2019 12:00
Registration is open from Tu 26.02.2019 09:00 to We 27.02.2019 12:00
Deregistration possible until Th 14.03.2019 23:59

Details

max. 50 participants

Language: English

Lecturers

Thomas Gehrig

Classes (iCal) - next class is marked with N

Final Exam at June 26.

Wednesday 06.03. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 13.03. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 20.03. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 27.03. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 03.04. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 10.04. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 08.05. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 15.05. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 22.05. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 29.05. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 05.06. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 12.06. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 19.06. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock
Wednesday 26.06. 08:00 - 09:30 Hörsaal 10 Oskar-Morgenstern-Platz 1 2.Stock

Information

Aims, contents and method of the course

Traditionally, financial economics assumes that investors and other market participants are perfectly rational. While this is a useful benchmark, a number of systematic biases and phenomena in people's behavior call for deeper analysis. The goal of this course is to discuss how these behavioral patterns affect financial markets and investors' decisions. This also allows to understand better, what "rationality" actually means in the context of uncertainty and risk.

We will start with describing the most relevant deviations (such as overconfidence, loss aversion and others), and we will continue with various financial applications. We will talk about bubbles, herding, implications for corporate decisions and investors' behavior.

Topics of the courses:
1. Psychological Biases
2. Limits to Arbitrage, Market Efficiency
3. Bubbles
4. Herding
5. Aggregate stock market
6. Investor Behavior
7. Behavioral Corporate Finance

Assessment and permitted materials

Exercises (25 points) , quizzes and participation (25 points) and final exam (50 points).

Minimum requirements and assessment criteria

50 points in total are required to pass the course.
60 points are required for grade 3, 70 points for grade 2 and 80 points for grade 1.

Examination topics