CKF_BEFI Behavioral finance

Faculty of Economics and Administration
Spring 2023
Extent and Intensity
0/0/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Mgr. Zuzana Gric, Ph.D. (lecturer)
Ing. Mgr. Martin Stachoň, Ph.D. (lecturer)
Guaranteed by
Mgr. Zuzana Gric, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Supplier department: Department of Finance – Faculty of Economics and Administration
Timetable
Tue 7. 3. 10:00–11:50 S315, 13:00–16:50 S315, Wed 8. 3. 9:00–11:50 S315, 13:00–15:50 S315, Tue 4. 4. 9:00–9:50 S315
Prerequisites (in Czech)
(TYP_STUDIA(C)&&OBOR(FINCP))
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
Course objectives
There is much evidence to suggest that the standard economic paradigms of rational investors and efficient markets do not adequately describe financial market behaviour. Behavioral finance studies how individuals' attitudes and behaviors affect their financial decisions and financial markets. This course summarizes current research on the behavioral aspects of individual investment decision making (microbehavioral finance) and how it differs from the efficient markets paradigm (macrobehavioral finance). In addition, the course examines behavioral finance models to explain investor behavior and market anomalies when rational models do not provide sufficient explanations. The course focuses, among other topics, on overconfidence, prospect theory, heuristics and the resulting biases, the impact of information on decision making, and framing areas.
Learning outcomes
At the end of this course, students will be able to orientate themselves in the field of behavioral finance; understand the behavioural aspects of individual financial decision-making; evaluate the (ir)rationality of financial decision-making in relation to the context of the decision; identify investor heuristics and biases; apply behavioural finance in practice or in financial decision-making or individual investing.
Syllabus
  • 1. Introduction to behavioural finance
  • 2. Behavioral aspects of financial decision making (concepts and theories)
  • 3. Market participants: buying and selling decisions in the financial market
  • 4. Market participants: long-term savings decisions
  • 5. Financial Markets: Case Studies 1
  • 6. Financial Markets: Case Studies 2
Literature
    required literature
  • HIRSHLEIFER, D. Behavioral finance. Annual Review of Financial Economics. 2015, vol. 7, p. 133-159. ISSN 1941-1367. info
  • BARBERIS, N and R THALER. A survey of behavioral finance. In Handbook of the Economics of Finance. 1st ed. 2003, p. 1053-1128. info
    recommended literature
  • KAHNEMAN, Daniel. Myšlení - rychlé a pomalé. Translated by Eva Nevrlá. Vydání první. V Brně: Jan Melvil, 2012, 542 stran. ISBN 9788087270424. URL info
  • THALER, Richard H. and Cass R. SUNSTEIN. Nudge (šťouch) : jak postrčit lidi k lepšímu rozhodování o zdraví, majetku a štěstí. Vydání první. Zlín: Kniha Zlin, 2010, 309 stran. ISBN 9788087162668. info
Teaching methods
Lectures and discussions.
Assessment methods
Written exam, essay.
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course is taught annually.
Information on the extent and intensity of the course: tutorial 12 hodin.
The course is also listed under the following terms Spring 2021, Spring 2022.
  • Enrolment Statistics (recent)
  • Permalink: https://is.muni.cz/course/econ/spring2023/CKF_BEFI