FIN 720 (01) - Topics in Finance II

Topic: Financial Decisions

This course seeks to place a framework around how markets work and how humans make financial decisions. Are markets efficient and are investors rational? Or are there elements of behavioral finance at work here? The course examines rational expectations, efficient markets, and intrinsic valuation. Finance can be viewed as an exact science, mathematical at its roots and hopelessly entangled with rules and calculations. This course takes this foundation and builds upon it by examining the role of psychology in financial decision making, including the cognitive and emotional issues that impact human choices in finance and investments. Can we explain why perfect market efficiency doesn’t really happen in practice? Can we separate economic incentives from emotional biases? In an effort to examine and balance conflicting ideas and approaches, this course will require you to think critically and demonstrate an ability to voice opinions and debate ideas. 

Everything comes back to money in some way. It affects all of us and confuses most of us. We all think about it a little differently. Money offers up plenty of life’s lessons, like risk, confidence, success, and happiness. It’s a magnifying glass on what people do and it’s the greatest show on earth.

Students should have a strong background in finance (FIN 701 & FIN 702 at a minimum) or economics to benefit from this course.