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Behavioral Finance (3 Credits)

BUS 4158

Behavioral Finance introduces theories developed by research into cognitive biases, individual emotions and other psychological effects of decision-making. It explores the applications of these theories in finance, investment and management, and suggests approaches through which the models can be put to effective use. Traditional (or standard) finance builds its theories on the presumption that everyone is rational. However, it's clear that in reality, many are not. An accumulating body of research challenges this fundamental presumption, suggesting instead that decisions are motivated by a complex array of non-rational psychological factors. This course will explore decision-making in the real world.