Adaptive Markets: Financial Market Dynamics and Human Behavior

University of Colorado System via edX

Overview

Explore the dynamic interplay between human behavior and financial markets in "Adaptive Markets: Financial Market Dynamics and Human Behavior," a groundbreaking course offered by the University of Colorado System on edX. Delve into the debate that divides economists: is the financial market governed by rationality as modern financial theory posits, or does it succumb to irrationality, as evidenced by repeated financial bubbles and crises? MIT finance professor Andrew W. Lo introduces the Adaptive Markets Hypothesis, a revolutionary framework that acknowledges the coexistence of rational and irrational behaviors in the financial market.

This comprehensive course draws on a diverse range of disciplines including psychology, evolutionary biology, neuroscience, artificial intelligence, and beyond to argue that market efficiency theories aren't flawed but simply incomplete. Uncover how market instability triggers instinctual reactions in investors, paving the way for inefficiencies ripe for exploitation. This paradigm-shifting perspective demonstrates how evolutionary processes influence market behavior and investor decisions at an unprecedented pace, marking periods of stability and crisis, innovation and regulation.

Embark on an intellectual journey from the inception of market efficiency and its shortcomings to the core of investor behavior, culminating in actionable insights into navigating global financial markets post-COVID-19, understanding the 2008 financial meltdown, and devising strategies to avert future crises. This course not only addresses finance but extends its insights to pressing global challenges such as cancer, climate change, and the energy crisis, underlining the significance of adaptive markets in contemporary society.

Despite recent operational changes — the transition of the edX platform to 2U, Inc. — your course experience remains unchanged. Rest assured, your enrollment, course fees, and the rich learning experience you anticipate will not be affected. Additionally, 2U, Inc. is dedicated to maintaining stringent privacy protections for all learners. Join us in uncovering the intricacies of financial markets through the lens of human behavior, and grasp new strategies for investment management and financial regulation in today's ever-evolving economic landscape.

Categories: Neuroscience Courses, Finance Courses, Psychology Courses.