Credits: 1.5 (1.5-0-0)
Prerequisites: MSL302 or MSL708
Description
This course aims to acquaint students with the area of Behavioral Finance. We begin by understanding the classical rational finance and then discuss the deviations from it. We then discuss some of the common biases in humans and how they affects finance and the related aspects. We connect all of these to study the concept of prospect theory. We also introduce some market anomalies and their possible explanations using behavioral finance. To conclude, we develop framework on how we can mitigate these biases as investor and in firms.
Prerequisite Tree
flowchart TD
MDL804-980[MDL804]
MDL804-980 --- Or981[Any one of]:::empty
Or981 -.-> MSL302-982[MSL302]
Or981 -.-> MSL708-983[MSL708]
classDef empty height:17px, fill:transparent, stroke:transparent;
classDef trueEmpty height:0px, width:0px;