040018 KU Advanced BA/CF/FM: Behavioural Finance (MA) (2021S)

4.00 ECTS (2.00 SWS), SPL 4 - Wirtschaftswissenschaften

Continuous assessment of course work

REMOTE

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 Th 11.02.2021 09:00 to Mo 22.02.2021 12:00
Registration is open from Th 25.02.2021 09:00 to Fr 26.02.2021 12:00
Deregistration possible until We 31.03.2021 23:59

Details

max. 50 participants

Language: English

Lecturers

Thomas Gehrig

Classes (iCal) - next class is marked with N

Attending the first meeting is mandatory.

Monday 01.03. 09:45 - 11:15 Digital
Monday 08.03. 09:45 - 11:15 Digital
Monday 15.03. 09:45 - 11:15 Digital
Monday 22.03. 09:45 - 11:15 Digital
Monday 12.04. 09:45 - 11:15 Digital
Monday 19.04. 09:45 - 11:15 Digital
Monday 26.04. 09:45 - 11:15 Digital
Monday 03.05. 09:45 - 11:15 Digital
Monday 10.05. 09:45 - 11:15 Digital
Monday 17.05. 09:45 - 11:15 Digital
Monday 31.05. 09:45 - 11:15 Digital
Monday 07.06. 09:45 - 11:15 Digital
Monday 14.06. 09:45 - 11:15 Digital
Monday 21.06. 09:45 - 11:15 Digital
Monday 28.06. 09:45 - 11:15 Digital

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