Behavioral Finance

Course Code
FIN 422
Hours
3 hours
Type
Elective
Offered
  • Winter 19
  • Winter 20

Behavioral Finance --- This course will survey developments in behavioral finance. A great deal of recent research has focused on the behavior of individual investors and how that behavior deviates from the way in which individuals have been modeled by economists. The findings are useful for individual investors who want to avoid making mistakes. They are also useful for future manages that will supervise traders and for those that would like to trade opposite the investors and biases. Finally, they can be useful for students that want to develop new finance technologies that help people avoid behavioral biases. Beyond covering behavioral finance, the course will discuss some strategies to succeed in a world where some traders have biases. Since this course is a Professional Capstone Course, students will be expected to engage in behavioral finance research and submit a research paper at the end of the semester.

Taught By
Tyler Shumway
  • John C. and Sally S. Morley Professor of Finance
  • Faculty Director, Tozzi
Tyler Shumway’s research examines the structure and function of financial markets and the pricing of financial securities. Some of his recent...