Description
Instructor(s)/Supervisor(s)/Coordinator(s): Abhiroop MUKHERJEE, Utpal BHATTACHARYAMany careful observational studies of actual behavior – and at least three recent Nobel Prizes – suggest that the standard economic paradigm of rational investors in an efficient market does not adequately describe real-world behavior. Behavioral finance combines findings in cognitive psychology with conventional economic logic to provide alternative explanations of such observed behavior. We will examine how psychology of decision making under uncertainty affects the traditional paradigm, while paying attention to practical applications for portfolio and investment management.