Personal Investment Methods
- The course aims to teach students methods of thinking in the field of investment using the methods and technologies of experimental economics.
- 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.
- 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.
- Interim assessment (2 module)0.5 * Final examination + 0.25 * Homework + 0.1 * In-class activities + 0.15 * Written assignment
- 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
- 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