323039 :Financial Analysis and Investor Behavior

General info

Instruction language English
Type of Instruction lectures, 2x3 hours a week (Lecture schedule)
Type of exams 1 assignment (30%) and written exam (70%) (Examination schedule)
Course load:6 ECTS credits
Registration:via Blackboard
Blackboard InfoLink to Blackboard (When you see 'Guest are not allowed in this course', please login at Blackboard itself)


dr. L.T.M. Baele


This course has two main parts. The first part will discuss some advanced topics in investment analysis. The second part will introduce students to the growing field of behavioral finance.


The investment analysis part will cover (a selection of) the following topics:

  1. How to set an appropriate Strategic Asset Allocation for potentially heterogeneous agents
  2. Pension Fund Plans
  3. Strategic Asset Allocation with the Black-Litterman Model
  4. Tactical Asset Allocation using the Parametric Portfolio Policy methodology

The second part of the course will cover the most important and most recent developments in behavioral finance. Amongst other things, it will explain some of the most frequent mistakes investors make, discuss the available empirical evidence, and present the underlying psychological drivers.


The total grade for this course will be determined for 70 percent by the score on a final exam, and for the remaining 30 percent by the score on the assignment. Students are required to score at least 5/10 on the final exam to pass the course (irrespective of the grade on the assignments). In the assignment, students will have to develop in teams a real-life investment strategy for a particular (virtual) client. Note that the assignment can only by handed in once. The grades will count for the re-sit exam as well.

Compulsory Reading

  1. 1. Selection of Research Papers that will be made available on Blackboard.

Recommended Prerequisites

Finance 1 and 2, or Financiering 1 and 2, or Corporate Finance 1 and 2. Strongly recommended: Investment Analysis.

Required Prerequisites

Investment Analysis

Compulsory for

Recommended option for