This course studies how human psychology impacts individuals and the financial markets. The topics include introduction to behavioral finance, noise traders, prospect theory, perception biases, inertial effects, causality and statistics, anomalies, predictability of stock prices, short term momentum, the equity premium puzzle, and managing behavior to make better investment decisions.

“Behavioral Finance: Understanding the Social, Cognitive, and Economic Debates” 2013, by Edwin Burton and Sunit Shah.
“Behavioral Finance Psychology, Decision-Making, and Markets” 2010, by Lucy F. Ackert and Richard Deaves. (雙葉)