Behavioral Finance

Course	V-803-BEFI
Semester	20242
ETCS	3,75
Core	No

Year	1. year
Semester	Summer 2024
Level of course	N/A
Type of course	Elective
Prerequisites	No prerequisites.
Schedule	No schedule found.
Lecturer	Ender Demir
Content
Description: In recent decades, the field of finance has developed a successful paradigm based on the notions that investors and managers are generally rational and the prices of securities are generally efficient. However, recent theoretical and empirical research has shown this paradigm to be insufficient to describe various features of actual financial markets and firm behavior. This course will describe how financial decisions of individuals and firms might deviate from those predicted by traditional financial/economic theories. Behavioral finance recognizes that our abilities to make complex financial decisions are limited due to the biases and errors of judgement to which all of us are prone. Students explore the existence of psychological biases in financial decision-making and examine the impacts of these biases in financial markets and other financial settings. The course examines how the insights of behavioral finance complement the traditional finance paradigm.   Objectives: To compare behavioral finance and traditional finance To identify and apply psychological concepts to financial markets and financial decision-making To understand key psychological biases that affect decision making process To apply research findings into finance anomalies
Learning outcome - Objectives
No objectives found.
Course assessment
No assessment found.
Reading material
No reading material found.
Teaching and learning activities
No activities found.
Language of instruction	English