BEHAVIORAL FINANCE – THEORY AND PRACTICE HYBRID TRAINING

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  • BEHAVIORAL FINANCE – THEORY AND PRACTICE HYBRID TRAINING

    This course aims to be a guide to understanding the fundamentals of behavioral finance and reasons and impacts of irrational investor behavior.

    Behavioral finance is a relatively new but quickly expanding field that seeks to provide explanations for people’s financial decisions by combining behavioral and cognitive psychological theory with conventional economics and finance.  

    Neoclassical economists assume that; i) all individuals act rationally to maximize their utility for both monetary and non-monetary gains, and ii) markets are fully efficient and prices reflect all available, relevant information.   However, in reality these assumptions often do not hold. Behavioral finance helps explain why and how markets might be inefficient, why people are imperfect processors of information and why they are often subject to biases, errors and perceptual illusions.  

    CFA exam curriculum devotes more and more weight to behavioral finance every year. Portfolio managers, investment advisors, consultants, CFOs and individual investors must have an in-depth understanding of different behavioral biases and their impacts on financial decision making.

    This course aims to be a guide to understanding the fundamentals of behavioral finance and reasons and impacts of irrational investor behavior.  Throughout the course, we will cover psychological biases that effect the financial decision-making process and examine their impacts on financial markets and on people’s lives.

    The course will be supported by real-life case studies, analyses of investor behavior, cases of behavioral interventions to modify investor behavior and a Q&A session with an investment practitioner.

    The training will be held on 8-9-14 January 2025 between 19:30-21:30 on Zoom, and on 18 January 2025 between 13:00-15:00 at Sabancı Center, 4 Levent.

  • DAY 1

    Our mistakes on monetary matters

    Reasons of those mistakes

    Savings and investment behavior of Turkish households

    Impact of new technological developments on investment habits

    DAY 2

    Foundations and Psychological Concepts

    Rational Choice Models

    Bounded Rationality Concept

    Prospect Theory

    Reference Dependence

    DAY 3

    Cognitive Biases

    Emotional Biases

    DAY 4

    Social Influence

    Behavioral Intervention Methods and Applications