Catalog Version

Summer/Autumn 2013
Catalog update:
May 15, 2013

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Students are required to follow the Academic Handbook and Code of Student Responsibility​​

 To complete the Behavioral Finance concentration, students must complete the following four courses:
 

FIN 523

INVESTMENT ANALYSIS

This course provides an introduction to capital markets and financial instruments and emphasizes on security valuation. It is not a course on personal investing. The course builds on Fin 555 and covers relevant aspects of fixed-income markets, asset pricing, portfolio management, equity markets, and derivatives markets. The course provides background material for both Fin 662 (Derivatives Valuation) and Fin 675 (Cases in Investments and Financial Engineering). Prerequisite: FIN 555
Prerequisites:
FIN 555 and GSB 420 are prerequisites for this class.

FIN 581

THE PSYCHOLOGY OF FINANCIAL DECISION MAKING

This course studies the various behavioral strategies that people rely upon to make financial decisions. The course starts with a review of psychological research on intuitive judgment, belief formation, learning, memory, utility theory, risk attitudes, and choice over time. The course introduces concepts such as framing, heuristics, self-control, and conformity. These ideas are illustrated with practical applications to saving decisions, entrepreneurship, trust between financial advisors and their clients, and decision-making in groups. Class discussions are based on academic research. Prerequisite: At least one graduate level finance course.
Prerequisites:
FIN 555 is a prerequisite for this class

FIN 582

THE PSYCHOLOGY OF FINANCIAL MARKETS

This course examines the structure and dynamics of asset prices in world financial markets from the perspectives of research in behavioral finance, portfolio management, and macroeconomic policy. Some prior learning in finance (preferably investments), economics and statistics, and a broad interest in the social sciences (psychology; sociology; history) are required. The course has use for investors and their advisors, as well as for anyone interested in financial history. Class discussions are based on academic research and accepted wisdom. Prerequisite: At least one graduate level finance course.
Prerequisites:
FIN 555 is a prerequisite for this class

FIN 583

BEHAVIORAL ASPECTS OF CORPORATE FINANCE

This course examines selected aspects of investment and financing decisions made in corporations as well as some questions of corporate governance and organizational architecture. The course places special emphasis on corporate decision processes, i.e., on the psychological, sociological and organizational determinants of behavior (e.g., bureaucracy, management fads, or executive hubris). Class discussions are based on academic research. Prerequisite: At lease one graduate level finance course.
Prerequisites:
FIN 555 is a prerequisite for this class