GM670: Behavioral Finance

Level
Graduate
School
School of Business
Credits 3

This course examines how psychological, cognitive, and emotional factors influence financial decision-making and market outcomes. Moving beyond the assumptions of traditional finance and the Efficient Market Hypothesis, students will explore how biases, heuristics, social dynamics, and limits to arbitrage affect asset pricing, portfolio construction, corporate finance, and market anomalies. Students will critically evaluate seminal academic research and apply behavioral frameworks to real-world financial markets. Emphasis is placed on empirical evidence, experimental design, and implications for investment management, financial regulation, and corporate strategy. Prerequsite: GM561