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Behavioral Finance
Last Updated: 2026-02-05 15:06:39
Abstract
Behavioral finance applies good knowledge about psychological biases for a better understanding of the financial market. The lectures focus on theoretical models which show the limits of arbitrage.
Objective
Knowing the limits of the standard model (anomalies) and important models of behavioral finance. Ability to apply the models.
Content
Introduction, limits of arbitrage: a noise traders model, the closed-end funds puzzle, psychology for finance, professional arbitrage, the equity premium puzzle, a model of investor sentiment, stock market bubbles, topics in behavioral corporate finance, inequity aversion and asset prices, neuroeconomics for finance.
Resources
Literature
Andrei Shleifer, Inefficient Markets, An Introduction to Behavioral Finance, OUP, 2000.
General Information
- Language
- English
- Levels
- NDS
- Frequency
- Yearly recurring
Examination
- Type
- end-of-semester examination
Course Components
| Type | Title | Time & Place | Hours |
|---|---|---|---|
| lecture | Behavioral Finance |
|
2 h weekly |
Offered In
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Master of Advanced Studies in Finance (For information and admission see . Abbreviations: O obligatory course; W elective course; E recommended or optional course)
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