9.5 hours on-demand video | Access on mobile and PC | Certificate of completion

Description

Behavioral Finance offers a revolutionary perspective on how investors make decisions, contrasting sharply with the traditional view of rational, utility-maximizing individuals. This course dives deep into the psychological factors and cognitive biases that influence financial behavior, showing how real-world decision-making often deviates from theoretical models. Through a structured exploration of key concepts like utility theory, market efficiency, and investor biases, students will gain the tools to understand and apply Behavioral Finance principles in various financial contexts. The course also addresses practical applications in portfolio construction, investment analysis, and client relations, bridging the gap between theory and practice.

What you'll learn

• Behavioral Finance Fundamentals: Understand the basics of Behavioral Finance, differentiating it from Traditional Finance.
• Utility and Bayes Theory: Explore utility theory, axioms, Bayes theory, and its application to economic decision-making.
• Rational Economic Decision-Making: Analyze the concept of rational economic decision-making and risk aversion among investors.
• Prospect Theory and Market Efficiency: Delve into prospect theory, efficient market hypothesis, market anomalies, and forms of market efficiency.
• Portfolio Construction: Gain insights into traditional perspectives of portfolio construction, consumption, and savings models.
• Behavioral Asset Pricing and Portfolio Theory: Study behavioral asset pricing models and behavioral portfolio theory.
• Cognitive and Emotional Biases: Identify and understand cognitive errors, emotional biases, and their impact on decision-making.
• Behavioral Investment Strategies: Explore goals-based investing, behaviorally modified asset allocation, and various models like Barnewall Two Way, BBK Five Way
• Limitations and Critiques: Analyze limitations of behaviorally modified asset allocation, biases in analyst forecasts, and the role of investment committees.
• Advisor-Client Dynamics: Examine the advisor-client relationship, portfolio construction considerations in DC plans and the influence of management on analysis
• Market Anomalies and Investment Strategies: Explore market anomalies, value and growth anomalies, and their implications for investment strategies
  

Who this course is for:

• Finance professionals and analysts seeking a deep understanding of Behavioral Finance principles.
• Financial advisors aiming to incorporate behavioral insights into their client interactions and portfolio management.
• Individuals interested in exploring the psychological factors shaping financial decision-making.
• Intermediate to advanced learners in finance looking to enhance their expertise in investment strategies and market behavior.
• Professionals engaged in investment management roles and decision-making within financial markets.
• Those who want to gain insights into the cognitive and emotional biases influencing financial choices.