This is an advanced course that brings together knowledge from the areas of modern finance and cognitive science into one unified framework. After completing this course, you should understand:
(i) the discrepancy between the theoretical foundations of modern finance and the evidence suggesting individuals are not rational wealth maximizers.
(ii) the concept of cognitive bias and how individuals make financial decisions;
(iii) the role of emotions and heuristics as evolutionary adaptations to dealing with complex critical systems
(iv) how individual behavior aggregates into corporate financial policies and broad stock market movements
(i) the discrepancy between the theoretical foundations of modern finance and the evidence suggesting individuals are not rational wealth maximizers.
(ii) the concept of cognitive bias and how individuals make financial decisions;
(iii) the role of emotions and heuristics as evolutionary adaptations to dealing with complex critical systems
(iv) how individual behavior aggregates into corporate financial policies and broad stock market movements
- Teacher: Calin Valsan