A study of how psychological biases affect financial decisions and market outcomes. Students analyze core behavioral concepts, evaluate their effects on investor and managerial behavior, and apply these insights to real-world phenomena. The course integrates foundational theory with contemporary examples to highlight how behavioral forces shape both markets and firms.
Athena Title
Behavioral Finance
Prerequisite
(FINA 3000 or FINA 3000E or FINA 3000H) and (FINA 4310 or FINA 4310E)
Semester Course Offered
Offered every year.
Grading System
A - F (Traditional)
Student learning Outcomes
Students will analyze key behavioral finance concepts—such as limits to arbitrage, and psychological biases—using real-world market events and empirical evidence to explain deviations from traditional finance models.
Students will evaluate how specific behavioral biases influence investor and managerial decisions under varying market conditions and assess the resulting implications for asset prices and firm behavior.
Students will apply behavioral finance theories to interpret contemporary financial phenomena and communicate their analyses to both specialized and general audiences in written or oral form.
Topical Outline
Foundations – Economics and Finance
Prospect Theory, Framing, Mental Accounting
Challenges to Market Efficiency
Heuristics, Biases, & Investor Behavior
Social Forces
Behavioral Investing & Personal Finance
Institutional Competencies Learning Outcomes
Analytical Thinking
The ability to reason, interpret, analyze, and solve problems from a wide array of authentic contexts.
