Behavioural Finance and Wealth Management

FIE434 Behavioural Finance and Wealth Management

  • Topics

    Topics

    1. Introduction

    2. Decision Theory

    3. Product Design

    4. Behavioral Biases

    5. Diagnostic

    6. Dynamic asset Allocation

    7. Risk Profiling

  • Learning outcome

    Learning outcome

    The aim of the course is to introduce results from psychological decision theory into mainstream finance. The students will in particular learn how to combine prospect theory with mean-variance analysis and how to give advice to private investors. By the end of this course the students will be able to: - Distinguish between rational and irrational behavior - Learn to implement behavioural finance insights to assess the risk profiles of individual investors - Question and assess the suitability of various rules of thumbs when investing under different market conditions and over time - Integrate behavioural finance insights along a standard wealth management process

     

     

     

  • Teaching

    Teaching

    Lectures

  • Required prerequisites

    Required prerequisites

    Basic course on Investments.

  • Requirements for course approval

    Requirements for course approval

    To get admission to the final exam the students are asked to solve one case study and present it.

  • Assessment

    Assessment

    The final exam is a three hours written exam.

    The examination can only be written in English.

  • Grading Scale

    Grading Scale

    Grading scale A - F.

  • Computer tools

    Computer tools

    Some excel tools and a log in to an advisory tool will be provided.

  • Semester

    Semester

    Spring

  • Literature

    Literature

    Hens and Bachmann (2008) Behavioral Finance for Private Banking, Wiley Finance (www.bfpb.ch)

     

Overview

ECTS Credits
7.5
Teaching language
English
Semester
Spring

Course responsible

Torsten Hens, Department of Finance