3506576: Financial Decision Making

Qualifications

• • Know the most prominent decision and game theories. They are aware of the important human biases in financial decision making.
  • Understand how rational solutions can be found by applying classical decision models and are aware of the differences between these model solutions and the solutions humans normally come up with.
  • Solve decision problems by using DT and GT models and methods. They find the strategic aspect of a problem and write it down into a simplified game/problem. They are able to use concepts and methods to solve those games and can predict the behavior of involved players.
  • Analyze games and decision situations and decide which approaches are useful to handle them.
  • Combine the knowledge from various areas to create a risk profiler for a better understanding of clients` needs.
  • Evaluate of Investments with EUT, MVT and PT.
• • Know methods in game and decision theory.
  • Explain and interpret the assumptions of these methods.
  • Use methods and models on unknown decision situations. Calculate optimal solutions and equilibria.
  • Compare different methods for measuring and controlling risk and uncertainty in decision processes.
  • Evaluate decision methods in mini cases and find appropriate models for solving typical problems.
• • Understand and critically discuss the arguments of fellow students.
  • Work together in small groups to solve mini cases and small examples discussed in class.
  • Evaluate the solutions of fellow students, explain carefully why they might be seen as right or wrong.
  • Understand the flaws and problems of fellow students, reaction without offense.
  • React to and defend their solution without being offended.
• • Listen carefully, read and repeat, practice until they understand the logic and mathematics the models are based upon.
  • Work together and motivate other students who tend to give up as a reaction to the difficulty of mathematical problems.
  • Take responsibility and organize/explain solutions to others who have problems and tend to give up.