Behavioral Finance, Summer 2018

Time: Summer 2018

Place: Helsinki, Aalto University School of Business 

Learning goal and objectives: Behavioral Finance is an approach to the analysis of asset prices, corporate finance, and financial decision-making in general, that relaxes some key assumptions of neoclassical financial economics. Namely, it considers a larger class of objective functions, not always compatible with expected utility. Second, it entertains the possibility that expectations are sometimes biased, and not updated in a Bayesian manner. Third, it considers how various financial market frictions can form strong 'limits to arbitrage'. This course is designed to introduce doctoral students to these concepts, and to support them in developing behavioral research ideas of their own. 

Instruction and examination: Professor Markku Kaustia (Aalto) http://finance.aalto.fi/en/people/kaustia/ 

Credits: 6 ECTS 

Grading: The grading is based on three parts (a written exam, a term paper and a classroom activity). The total points of this course are 100. In order to pass the course one needs at least 40% of points (i.e. 40 points). In addition, one has to get at least 40% of the points from the written exam. 

Prerequisites: GSF Courses or equivalent knowledge 

Admittance: 25 students. Finance PhD students have priority, but the course is also open for KATAJA‐, FDPE‐, and foreign doctoral students given that there is space in the course. Applications are sent directly to This email address is being protected from spambots. You need JavaScript enabled to view it. and application deadline will be announced later on in the course web pages: http://gsf.aalto.fi/ecf.html The acceptances will be announced shortly after the registration deadline 

Instructors: Professor Markku Kaustia (Aalto) http://finance.aalto.fi/en/people/kaustia/ 

Course coordinator and contact information: Milja Koski, This email address is being protected from spambots. You need JavaScript enabled to view it. , 040 353 8061. Application instructions on course web pages: http://gsf.aalto.fi/ecf.html