This course will use insights from behavioral economics, psychology, and other social sciences to develop theoretical frameworks, quantitative tools, and practical issues that are critical for investment management. It will provide a comprehensive understanding of how human behavior impacts financial markets and investors’ decision-making processes. The topics include asset allocation, portfolio optimization, and the psychology of investing. The course focuses on application of portfolio theory to investment practice in the real world while including a discussion of psychological biases’ influence on investor behavior. Thus, this course is a blend of investment theory and state-of-the-art practice. Students will learn how to establish appropriate investment objectives based on their risk tolerance level and develop optimal portfolio strategies. The course is taught through lectures, investment simulation, portfolio clinics, and case studies. Basic knowledge and skills in statistics, economics, and Excel are essential.
One completed MBA-level required course in Finance or Basics of Quantitative Analysis waiver course (or recent statistics course) and Basics of Finance waiver course (or recent Corporate Finance course)