Behavioral Finance - Foundations and Advanced Introduction
2:45:34
Description
This mini-course is designed to set a solid foundation for better understanding the topic of behavioral finance.
What You'll Learn?
- Understand the differences between classical financial theory and behavioral finance.
- Learn about the various ways individuals violate rational decision-making.
- Apply aspects of prospect theory to make better financial decisions.
- Take notes through the provided abbreviated notes and complete exercises and quizzes to demonstrate knowledge.
Who is this for?
What You Need to Know?
More details
DescriptionIn this course, you will learn:
The differences between classical financial theory and behavioral finance. We outline why behavioral finance illustrates the decisions that people actually make compared to the financial decisions that individuals "should" make (depicted by expected value and utility functions).
Various ways individuals violate rational decision-making. These ways include: loss aversion, framing effects, and risk domain specificity.
Understanding prospect theory and knowing how to formulate its components, including loss aversion, diminished value sensitivity, and reference point dependence.
How framing and mental accounting factor into the decision-making process.
Applying aspects of prospect theory to make better financial decisions. From horse betting biases to the disposition effect, we learn about how prospect theory can be applied in various domains.
This course includes nearly 3 hours of lectures and included all course notes - both students notes and full instructor notes. Each of the three sections include a quiz at the end of each section for students to demonstrate their learning. Additional exercises (and solutions) are included as well.
Understanding these key concepts will give students the ability to better understand themselves, but also the world around them, whether its family/friends, colleagues or clients.
Whether you are new to finance or a financial professional, this course is for you!
Who this course is for:
- Individual's interested in learning more about finance.
- Financial professionals seeking to extend their understanding of finance.
In this course, you will learn:
The differences between classical financial theory and behavioral finance. We outline why behavioral finance illustrates the decisions that people actually make compared to the financial decisions that individuals "should" make (depicted by expected value and utility functions).
Various ways individuals violate rational decision-making. These ways include: loss aversion, framing effects, and risk domain specificity.
Understanding prospect theory and knowing how to formulate its components, including loss aversion, diminished value sensitivity, and reference point dependence.
How framing and mental accounting factor into the decision-making process.
Applying aspects of prospect theory to make better financial decisions. From horse betting biases to the disposition effect, we learn about how prospect theory can be applied in various domains.
This course includes nearly 3 hours of lectures and included all course notes - both students notes and full instructor notes. Each of the three sections include a quiz at the end of each section for students to demonstrate their learning. Additional exercises (and solutions) are included as well.
Understanding these key concepts will give students the ability to better understand themselves, but also the world around them, whether its family/friends, colleagues or clients.
Whether you are new to finance or a financial professional, this course is for you!
Who this course is for:
- Individual's interested in learning more about finance.
- Financial professionals seeking to extend their understanding of finance.
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Udemy
View courses Udemy- language english
- Training sessions 18
- duration 2:45:34
- Release Date 2025/01/23
