KTTS4160 Behavioral Finance (5 cr)
Study level:
Advanced studies
Grading scale:
0-5
Language:
English
Responsible organisation:
Jyväskylä University School of Business and Economics
Curriculum periods:
2024-2025, 2025-2026, 2026-2027, 2027-2028
Description
The lecture course gives a systematic treatment of behavioral finance starting from the arguments - limits to arbitrage and investor psychology - on which the approach is based on. Important concepts are heuristics, representativeness, overconfidence, anchoring, mental accounting, and disposition effect. The lecture course gives a thorough treatment of the key theories including the behavioral asset pricing theory by Shefrin and the prospect theory. Discussion of empirical evidence covers option markets, yield curve determination, and behavioral corporate finance in addition to the stock markets.
Learning outcomes
After completion of the lecture course a student is able to
- understand how behavioral patterns impact asset pricing
- analyze impact of investor sentiment on market behavior
- to apply behavioral models to analyze market behavior
- understand how behavioral patterns impact asset pricing
- analyze impact of investor sentiment on market behavior
- to apply behavioral models to analyze market behavior
Additional information
Lectured biannually in odd years, spring semester 4th period.
Study materials
Lecture material and a textbook
Literature
- Shefrin, H. 2008. A Behavioral Approach to Asset Pricing (2nd edition); ISBN: 978-0123743565
Completion methods
Method 1
Description:
Lectures and a written exam
Evaluation criteria:
A written exam
Time of teaching:
Period 3
Select all marked parts
Parts of the completion methods
x
Teaching (5 cr)
Type:
Participation in teaching
Grading scale:
0-5
Language:
English