• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site
2019/2020

Personal Investment Methods

Type: Minor
Delivered by: Department of Finance
When: 1, 2 module
Instructors: Konstantin Kholodilin, Vasilisa A. Makarova, Marina Utevskaya
Language: English
ECTS credits: 5

Course Syllabus

Abstract

Rational models of the classical theory of finance have much greater capabilities in the application of behavioral aspects, the main of which will be presented in this discipline. Target audience includes following three groups: – future financiers, consultants and analysts; – future academics interested in behavioral and classic theory of finance field; – general audience that is interested in the complicated world of finance.
Learning Objectives

Learning Objectives

  • The course aims to teach students methods of thinking in the field of investment using the methods and technologies of experimental economics.
Expected Learning Outcomes

Expected Learning Outcomes

  • Students understand time value of money, patterns of financial decision making in increasing complexity of financial environment.
  • Students know mathematics of finance theory and methodology of financial decisions.
  • Students understand specific questions the theory addresses.
  • Students understand that finance issues are not isolated from each other.
  • Students know how and when finance theory can be applied to achieve a desired goal.
  • Students understand which theory is applicable in these circumstances and what are its practical limits.
  • Students are familiar with empirical evidence which support or reject hypothesis and predictions of a theory.
  • Students are able to critically evaluate current research in this field.
Course Contents

Course Contents

  • Introduction. Problems of managing personal finances in a modern economy. Personal finance management from the point of view of the classical (neoclassical) economic paradigm.
  • The use of static models of the theory of inventory management in solving problems of personal investment.
  • The use of dynamic models of inventory management theory in solving personal investment problems. Elements of dynamic programming.
  • Personal investment instruments from the point of view of behavioral economics (static and deterministic models).
  • Personal investment instruments from the point of view of behavioral economics (dynamic models, models of intertemporal choice).
  • Personal investment instruments - decision making models under Uncertainty. The application of the theory of static strategic games in the sphere of personal investment.
  • Personal investment instruments - decision making models under Uncertainty. The application of the theory of the dynamic games and the games with uncompleted and imperfect in the sphere of personal investment.
  • Application of the theory of cooperative games in modeling and analysis of problems in the sphere of personal investment.
Assessment Elements

Assessment Elements

  • non-blocking Homework
  • non-blocking In-class activities
  • non-blocking Written assignment
  • non-blocking Final examination
Interim Assessment

Interim Assessment

  • Interim assessment (2 module)
    0.5 * Final examination + 0.25 * Homework + 0.1 * In-class activities + 0.15 * Written assignment
Bibliography

Bibliography

Recommended Core Bibliography

  • Angner, E. (2016). A Course in Behavioral Economics 2e (Vol. 2nd ed). Basingstoke: Palgrave Macmillan. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1524094

Recommended Additional Bibliography

  • Richards, T. (2014). Investing Psychology : The Effects of Behavioral Finance on Investment Choice and Bias. Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=759584