SJQU-QR-JW-033 (AO) 【行为金融学(双语)】 (Behavioral Finance bilingual)) Basic information Course code:【2060778 Credits:【2】 Suitable major:【 Financial Engineering】 Course status:【 Optional】 Department Financial engineering, Business School Textbook K Behavioral finance: psychology, decision-making, and market, Lucy F. Ackert, Richard Deaves, Tsinghua University Press, 2010. 12, 1st edition I Reference booklist【《行为金融学》吕彦昭白云清华大学出版社2019年12第1版】 【《博弈论与信息经济学》张维迎上海人民出版社】 【《普通心理学》彭聃龄北京师范大学出版集团】 【概率论与数理统计盛骤等高等教育出版社】 Course website Prerequisites:【《 macroeconomIcs》,《 microeconomIcs》(3)】 2. Course Descriptio Behavioral finance is an emerging new one in the financial discipline, and it is also on research of kahneman the nobel prize winner in economics This course focuses on the analysis of market anomalies that are difficult to explain by traditional financial theory, and promotes the research of modern financial theory to a new stage On the basis of expounding the origin, connotation and theoretical framework of behavioral finance, this course systematically introduces the principles and related experiments of behavioral finance, deeply analyzes the frontier application fields of behavioral finance, and clearly and completely constructs the theoretical framework of behavioral finance by introducing the research methods and achievements of neuroscience in the field of behavioral finance This course integrates economics, psychology neuroscience and other disciplines. It is a master of the development of financial science. It is conducive to students' comprehensive application of various knowledge and the improvement of complex problem solving ability. It is a subject worthy of continuous and in-depth research 3. Suggestion for Choice of the course This course is suitable for sophomore students majoring in finance. they are required to ha strong foundation in economics and management. At the same time, they should also have a strong ability to comprehensively apply all kinds of knowledge
1 【行为金融学（双语）】 【Behavioral Finance (Bilingual)】 1. Basic information Course code：【2060778】 Credits：【2】 Suitable major：【Financial Engineering】 Course status：【Optional】 Department ：Financial Engineering, Business School Textbook ： 【 Behavioral finance: psychology, decision-making, and market, Lucy F. Ackert, Richard Deaves, Tsinghua University Press, 2010.12, 1 st edition】 Reference booklist【《行为金融学》 吕彦昭 白云 清华大学出版社 2019 年 12 第 1 版】 【《博弈论与信息经济学》 张维迎 上海人民出版社】 【《普通心理学》 彭聃龄 北京师范大学出版集团】 【概率论与数理统计 盛骤等 高等教育出版社】 Course website： Prerequisites：【《macroeconomics》,《microeconomics》 （3）】 2. Course Description Behavioral finance is an emerging new one in the financial discipline, and it is also one of the research of Kahneman,, the Nobel Prize winner in economics. This course focuses on the analysis of market anomalies that are difficult to explain by traditional financial theory, and promotes the research of modern financial theory to a new stage. On the basis of expounding the origin, connotation and theoretical framework of behavioral finance, this course systematically introduces the principles and related experiments of behavioral finance, deeply analyzes the frontier application fields of behavioral finance, and clearly and completely constructs the theoretical framework of behavioral finance by introducing the research methods and achievements of neuroscience in the field of behavioral finance. This course integrates economics, psychology, neuroscience and other disciplines. It is a master of the development of financial science. It is conducive to students' comprehensive application of various knowledge and the improvement of complex problem solving ability. It is a subject worthy of continuous and in-depth research. 3. Suggestion for Choice of the Course This course is suitable for sophomore students majoring in finance. They are required to have a strong foundation in economics and management. At the same time, they should also have a strong ability to comprehensively apply all kinds of knowledge. SJQU-QR-JW-033（A0）
4. The Correlation of Curriculum and graduation Requirements 专业毕业要求 关联 L011: Accurately describe the responsibilities, tasks, objectives, risks and benefits of finance related positions and investment projects L021: According to the requirements of the teaching syllabus and teachers independently complete the collection of relevant information, pre-class preview L031: Ability of economic and financial investigation Lo32:Be able to correctly analyze financial investment issues. L034: Be able to deal with financial investment problems correctly L041: Comply with school rules and regulations, with legal awarene L061: Be able to search professional literature according to needs L081: Can collect international financial and economic information and has the ability to digest international information and grasp international investment and trading opportunities LO=learning outcomes 5. Course Objectives /Course Expected Learning Outcomes Course Course Objectives Expected Teaching and (Detailed Expected Learning Learning Method Outcomes) Methods Outcomes Students can accurately Discussion Class describe the responsibilities lecture. case Presentation tasks, objectives, risks and uestion time LOIN benefits of financial related practice positions and investment classroom quiz Practice projects LO311 Students can collect Lecture、 economic and financial dataExercise Problem set on the internet ase stu Discussion Students can collect international financial and Discussion Presentation information and grasp
2 4. The Correlation of Curriculum and Graduation Requirements LO=learning outcomes 5. Course Objectives / Course Expected Learning Outcomes 专业毕业要求 关联 LO11 ： Accurately describe the responsibilities, tasks, objectives, risks and benefits of finance related positions and investment projects LO21 ： According to the requirements of the teaching syllabus and teachers, independently complete the collection of relevant information, pre-class preview and after-class exercises. LO31： Ability of economic and financial investigation. LO32： Be able to correctly analyze financial investment issues. LO34： Be able to deal with financial investment problems correctly. LO41： Comply with school rules and regulations, with legal awareness. LO61： Be able to search professional literature according to needs. LO81： Can collect international financial and economic information and has the ability to digest international information and grasp international investment and trading opportunities. No. Course Expected Learning Outcomes Course Objectives （Detailed Expected Learning Outcomes） Teaching and Learning Methods Assessment Methods 1 LO11 Students can accurately describe the responsibilities, tasks, objectives, risks and benefits of financial related positions and investment projects. Discussion, lecture, case analysis practice, classroom quiz Class Presentation Question time in class Practice score 2 LO311 Students can collect economic and financial data on the internet Lecture、 Exercise、 Discussion Problem Set、 Case Study 3 LO81 Students can collect international financial and economic information , digest international information and grasp Lecture、 Discussion Class Presentation
nternational investment and trading opportunities 6. Course Content Unit 1 Foundation finance 1: expected utility theory Theory class hour: 3 Content of courses 1. Neoclassical economics 2. Expected utility theory 3. Risk attitude Capability requirements 1. Know relevant definitions, knowledge base, basic principles, etc 2. Know the ten core theories of behavioral finance theory Teaching focus 1. Basic principles of behavioral finance 2. Ten core theories of behavioral finance theory Unit2 Foundations of finance 2: asset pricing, market efficiency and agency relationships Theory class hour: 4 Content of courses 1. The pricing of risk 2. Market efficie 4. From rationality to psychology 1. Understanding CA 2. Know the optimal portfolio Teaching focus The influence of pricing model an theory on financial market and insurance decision Unit 3 Prospect theory framing, and mental accounting Theory class hour: 4 Content of courses 1. Key aspects of prospect theory 2. Framing and 3. Mental accounting: closure, integration and segregation 4. From theory to practice Capability req 1. Know the origin of prospect theory 2. Be able to use relevant knowledge to explain the theory Teaching focus 1. Prospect theory and psychology 2. mental accounting (there is no Unit 4 because there is no chapter 4 in the textbook) Unit 5 Heuristics and Biases Theory class hour: 4 Content of courses
3 6. Course Content Unit 1 Foundation finance 1: expected utility theory Theory class hour: 3 Content of courses 1. Neoclassical economics 2. Expected utility theory 3. Risk attitude 4. Allais paradox Capability requirements 1. Know relevant definitions, knowledge base, basic principles, etc 2. Know the ten core theories of behavioral finance theory Teaching focus 1. Basic principles of behavioral finance 2. Ten core theories of behavioral finance theory Unit2 Foundations of finance 2: asset pricing, market efficiency and agency relationships Theory class hour: 4 Content of courses 1. The pricing of risk 2. Market efficiency 3. Agency theory 4. From rationality to psychology Capability requirements 1. Understanding CAPM 2. Know the optimal portfolio Teaching focus The influence of pricing model an theory on financial market and insurance decision Unit 3 Prospect theory, framing, and mental accounting Theory class hour: 4 Content of courses 1. Key aspects of prospect theory 2. Framing and prospect theory 3. Mental accounting: closure, integration and segregation 4. From theory to practice Capability requirements 1. Know the origin of prospect theory 2. Be able to use relevant knowledge to explain the theory Teaching focus 1. Prospect theory and psychology 2. mental accounting (there is no Unit 4 because there is no chapter 4 in the textbook) Unit 5 Heuristics and Biases Theory class hour: 4 Content of courses international investment and trading opportunities
1. Perception, Memory and heuristics 2. Familiarity and related heuristics 3. Representativeness and related biases 4. Anchoring 5. Irrationality and adaptation Capability requirements 1. Know the meaning of heuristics and biases 2. Can use this theory to explain financial phenomena Teaching focus 1. Heuristics 2. Anchoring, irrationality and adaptation Unit 6 Overconfidence Theory class hour: 4 Content of courses 1. Miscalibration 2. Other strains of overconfidence 3. Factors impeding correction 4. Looking ahead to financial application Capability requirements 1. Understand what the miscalibration is 2. Better-than-average effect Teaching focus 1. Overconfidence and miscalibration 2. Biases interfering with learnin Unit 7 Emotional foundations Theory class hour: 4 Content of courses 1. The substance of emotion 2. History of emotion theory 3. Evolutionary theory 4. Emotion and reasoning Capability requirements 1. Know the meaning of emotion foundations 2. Can use this theory to explain financial phenomena Teaching focus 1. Emotion theory history and evolution 2. The meaning of brain, emotion, mind Unit 8 Implications of heuristics and biases for financial decision-making Theory class hour: 3 Content of courses 1. Financial behaviors stemming from familiarity 2. Financial behaviors stemming from representativeness 3. Anchoring to available economic cues Capability requirements 1. Know the meaning of home bias 2. Be able to use this theory to analyze relevant cases Teaching focus
4 1. Perception, Memory, and heuristics 2. Familiarity and related heuristics 3. Representativeness and related biases 4. Anchoring 5. Irrationality and adaptation Capability requirements 1. Know the meaning of heuristics and biases 2. Can use this theory to explain financial phenomena Teaching focus 1. Heuristics 2. Anchoring, irrationality and adaptation Unit 6 Overconfidence Theory class hour: 4 Content of courses 1. Miscalibration 2. Other strains of overconfidence 3. Factors impeding correction 4. Looking ahead to financial application Capability requirements 1. Understand what the miscalibration is. 2. Better-than-average effect Teaching focus 1. Overconfidence and miscalibration 2. Biases interfering with learning Unit 7 Emotional foundations Theory class hour: 4 Content of courses 1. The substance of emotion 2. History of emotion theory 3. Evolutionary theory 4. Emotion and reasoning Capability requirements 1. Know the meaning of emotion foundations 2. Can use this theory to explain financial phenomena Teaching focus 1. Emotion theory history and evolution 2. The meaning of brain, emotion,mind Unit 8 Implications of heuristics and biases for financial decision-making Theory class hour: 3 Content of courses 1. Financial behaviors stemming from familiarity 2. Financial behaviors stemming from representativeness 3. Anchoring to available economic cues Capability requirements 1. Know the meaning of home bias 2. Be able to use this theory to analyze relevant cases Teaching focus
1. Local investing and informational advantages availability and attention-grabbing 2. Anchoring vs herding and analysis Unit 9 Implications of overconfidence for financial decision-making Theory class hour: 3 Content of courses 1. Overconfidence and excessive trading 3. Underdiversification and excessive risk taking 4. Excessive optimism and analysis Capability requirements 1. Know the overconfident traders' mod 2. Can use dynamics of overconfidence in market practitioners 3. Can use gender and overconfidence analysis in the financial realm Application of financial decision-making in Finance Unit 10 Individual investor and the force of emotion Theory class hour: 3 Content of courses 1. Mood of the investor and the mood of the market The disposi Capability requirements 1. Know the prospect the 2. Know the experimental evidence 3. Can use prospect theory to do sequential decision-making Mood of market, pride and regret, evidence of a house money effect on a large scale General review Examination 7. Grading Policy Grading No of the learning Exams and Assignments Percentage Computation Outcomes evaluated Final exam LO11/L081 20% LOI1/LO31/L081 X2 Case analysis practice 011L03/081 X3 Performance in class 20% LOI1/L031/L081 Instructor: lu zheng Deans signature Date: Aug 2, 2021 Date: Aug 2. 2021
5 1. Local investing and informational advantages, availability and attention-grabbing, 2. Anchoring vs. herding and analysis Unit 9 Implications of overconfidence for financial decision-making Theory class hour: 3 Content of courses 1. Overconfidence and excessive trading 2. Demographics and dynamic 3. Underdiversification and excessive risk taking 4. Excessive optimism and analysis Capability requirements 1. Know the overconfident traders’ model 2. Can use dynamics of overconfidence in market practitioners 3. Can use gender and overconfidence analysis in the financial realm Teaching focus Application of financial decision-making in Finance Unit 10 Individual investor and the force of emotion Theory class hour: 3 Content of courses 1. Mood of the investor and the mood of the market 2. The disposition effect 3. House money Capability requirements 1. Know the prospect theory as an explanation for the disposition effect 2. Know the experimental evidence 3. Can use prospect theory to do sequential decision-making Teaching focus Mood of market, pride and regret, evidence of a house money effect on a large scale. General review Examination 7. Grading Policy Grading Computation Exams and Assignments Percentage No.of the Learning Outcomes evaluated 1 Final Exam 40% L011/L081 X1 homework 20% L011/L031/L081 X2 Case analysis practice 20% L011/L031/l081 X3 Performance in class 20% L011/L031/L081 Instructor：lu zheng Dean’s signature: Date：Aug 2, 2021 Date：Aug 2, 2021
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