After completing the course Advanced Behavioural Finance the student is able to:
- Explain how prospect theory and ambiguity attitudes can influence markets away from effiency;
- Explain how under/overreaction, momentum and herding affects can influence markets aways from efficiency;
- Explain how preferences can be imprecise and why this has implications for decision-making;
- Explain how investors perceive risk and return;
- Argue both sides of the behavioural vs traditional finance debate;
- Apply empirical and theoretical critiques to new contributions in behavioural finance;
- Write a concise report critically summarizing the main findings of a behaviioural paper;
- Generate novel hypotheses and research projects based on previous results in behavioural finanance.
This course covers a broad range of advanced topics in Behavioural Finance. The course aims to take students right to the research frontier in behavioural finance, so that they are in a perfect position to contribute to this literature in their Master's thesis. The course will consist of thorough introductions to several topics in behavioural finance, such as the effect of loss and ambiguity aversion on asset pricing, imprecise preferences, investor inattention, investor risk perception. Each week we will discuss a recent working paper on that week’s topic in depth, and analyse the assumptions, conclusions and methodology.
|Background such as a Bachelor's level course in behavioural economics or finance is recommended, but not required.|
|Written exam + reports on current papers + presentation research idea.
If after the retake, the course is not completed, partial grades do NOT remain valid. Students have to re-do all parts of the course.|