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Finansų rinkų elgsena (FIN106)

Annotation

This is an introductory course in behavioral finance. It offers an overview of behavioural phenomena. It also explores behavioural biases, heuristics and emotions effect on investor’s decision-making.

Aims of the course

The course introduces the main concepts of behavioral finance. It focuses on the judgment and perception biases and preference errors. The course also introduces to the prospect theory, its applications in the market and explains the principles of behavioural investing. It provides the overview of market anomalies and relates them to behavioural explanation. Furthermore, it explores social influences on decision-making.

Learning outcomes

  • Get familiar with psychology foundations that underlie investors’ behaviour.
  • Recognize and describe behavioural biases, heuristics and emotions in the context of their effect on investors’ decision-making.
  • Understand the processes of financial markets; be able to identify market anomalies and to detect the opportunities for their profitable exploitation.
  • Understand the prospect theory and its applications in financial markets.
  • Demonstrate familiarity with social influences on judgment and decision making and its effect on the market.
Syllabus
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