This course examines the role of financial technology in investment decisions. Further, we will examine how new sources of data can help (and harm) investors and asset management decisions. 

We will examine important innovations in finance with a key focus on both retail investment opportunities and tools used in asset management. These include advances in basic technology and access to information, robo-advised solutions, innovations in financial assets and products, investor preferences, and financial advice.

Students who have successfully completed this course will have acquired the following skills:

• Gain a firm understanding of how financial decision making and market outcomes can be influenced by human behavior and technology.
• Apply concepts from finance to retail and professional investors.
• Discuss how implications of retail behavior may be used in finance: can fund managers generate alpha from mispricing or anomalies? Are investors and markets predictably irrational?

Moreover, the class will contribute to the students’ ability to:

• Summarize and professionally present case studies and academic material in a concise way.
• Understand important concepts, findings, and implications from empirical and experimental studies
• Adequately communicate and participate in in-class discussions

After completing this class the student will also have the ability to:

• Read and comprehend introductory academic material in behavioral economics and behavioral finance.
• Apply basic insights from finance to financial decision making.
• Think critically about innovations in finance.

Attendance is required and points can be earned from active participation. Students may not miss more than 20% of classes.

This course consists of a mix of regular lectures, class room discussions and analyses of assignments. The lectures will be largely based on the instructor’s lecture notes and additional readings. The lectures aim to communicate to students the theoretical framework and main concepts behind various topics. To each main section of the class there will be assignments to gain a deeper understanding behind the concepts developed during the lectures. The assignments will involve articles and summarizing the main findings and discussing the implications.

Students will be allowed to work in small groups of maximum of 4 students per group. Solutions to these assignments must be sent to the instructor electronically. The solution will be presented and discussed in class by the students.

• Final-term exam (40%): There will be a 90-minute, closed-book exam for part two of the course.
• Group assignment (30%): Group assignment related to material (to be outlined in first class)
• Short reading assignments (2) (25%):  Short questions/exercises related to the readings in class.
• Participation (5%): Active participation in class

Students need at least 50% of the total points to pass this course.

Please contact the lecturer if you have further questions about the assessment.

Students need at least 50% of the total points to pass this course. The remaining cut-off points are 65, 77.5, 90.

Completion of the Course 1 „Basics in Finance“

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To be distributed via Learn at the start of the course.