IBF207 Behavioral Finance

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Course Code Course Title Weekly Hours* ECTS Weekly Class Schedule
T P
IBF207 Behavioral Finance 3 0 6 Tue 15.00-15.50 / Th 12.00-13.50
Prerequisite Junior Standing It is a prerequisite to

None

Lecturer Office Hours / Room / Phone

Currently not available

E-mail
Assistant Assistant E-mail
Course Objectives This course is designed to provide an overview of an exciting new and fast growing area in finance, which takes as its premise that investment decision-making and investor behavior are not necessarily driven by 'rational' considerations but by aspects of personal and market psychology.
Textbook Beyong Greed and Fear (2002) - Hersh Shefrin and Investments by Zvi Bodie, Alex Cane and Alan J. Marcus
Additional Literature
Learning Outcomes After successful  completion of the course, the student will be able to:
  1. Discuss the differences between a behavioral finance perspective and a traditional finance perspective.
  2. Demonstrate knowlege regarding cognitive biases and errors of judgment that affect financial decisions.
  3. Evaluate behavioral influences involving individuals' investment and corporate (executive) financial decisions.
Teaching Methods The methods include lectures (which may involve power point presentation, video and audio aids), student presentations, projects and class discussions.
Teaching Method Delivery Teaching Method Delivery Notes
WEEK TOPIC REFERENCE
Week 1 Introductory Lecture
Week 2 Introduction Chapter 1
Week 3 Heuristics- Driven Bias: The First Theme Chapter 2
Week 4 Frame Dependence : The Second Theme Chapter 3
Week 5 Inefficient markets Chapters 4
Week 6 Quiz I & Trying to Predict the Market (Chapter 5) Chapters 1, 2, 3, 4
Week 7 Midterm Exam
Week 8 Get Eventis: Riding Losers Too Long Chapter 9
Week 9 Portofolios, Pyramids, Emotions and Biases Chapter 10
Week 10 Retirement Saving: Myopis and Self Control Chapters 11
Week 11 Rationales Managers and Irrational Investors Chapter 6
Week 12 Quiz II, Optimism in Analysts Earnings (Chapter 18) Chapter 5, 9, 10, 11, 6
Week 13 Corporate Takeovers and the Winner's Curse Chapter 16
Week 14 Options Chapter 19
Week 15 Excessive Speculation in Foreign Exchange Markets Chapter 20
Assessment Methods and Criteria Evaluation Tool Quantity Weight Alignment with LOs
Final Exam 1 40 1,2,3
Semester Evaluation Components
Midterm Exam 1 30 1,2,3
Quiz 2 15 1,2,3
Project 1 15 1,2,3
***     ECTS Credit Calculation     ***
 Activity Hours Weeks Student Workload Hours Activity Hours Weeks Student Workload Hours
Lecture Hours 3 15 45 Home Study 2 15 30
Quiz Study 10 2 20 Midterm Exam Study 25 1 25
Final Exam Study 30 1 30
        Total Workload Hours = 150
*T= Teaching, P= Practice ECTS Credit = 6
Course Academic Quality Assurance: Semester Student Survey Last Update Date: 06/11/2020
QR Code for https://ecampus.ius.edu.ba/syllabus/ibf207-behavioral-finance

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