Course Summary
This course by Duke University explores the intersection of behavioral psychology and finance, examining how human behavior and emotions impact financial decisions.Key Learning Points
- Understand the role of emotions and psychology in financial decision making
- Explore the biases and heuristics that can lead to suboptimal financial choices
- Learn how to apply behavioral finance principles to improve investment outcomes
Related Topics for further study
- behavioral finance
- investment psychology
- cognitive biases
- financial decision making
- emotional intelligence
Learning Outcomes
- Understand the psychological factors that influence financial decisions
- Identify and avoid common cognitive biases in financial decision making
- Apply behavioral finance principles to improve investment outcomes
Prerequisites or good to have knowledge before taking this course
- Basic understanding of financial markets and investment products
- Familiarity with basic statistical concepts
Course Difficulty Level
IntermediateCourse Format
- Self-paced
- Online
- Video lectures
- Quizzes and assignments
Similar Courses
- Behavioral Economics and Investment
- Behavioral Finance
Related Education Paths
Notable People in This Field
- Richard Thaler
- Daniel Kahneman
Related Books
Description
We make thousands of decisions every day. Do I cross the road now, or wait for the oncoming truck to pass? Should I eat fries or a salad for lunch? How much should I tip the cab driver? We usually make these decisions with almost no thought, using what psychologists call “heuristics” – rules of thumb that enable us to navigate our lives. Without these mental shortcuts, we would be paralyzed by the multitude of daily choices. But in certain circumstances, these shortcuts lead to predictable errors – predictable, that is, if we know what to watch out for. Did you know, for example, that we are naturally biased towards selling investments that are doing well for us, but holding on to those that are doing poorly? Or that we often select sub-optimal insurance payment plans, and routinely purchase insurance that we don’t even need? And why do so many of us fail to enroll in our employer’s corporate retirement plans, even when the employer offers to match our contributions?
Outline
- Week 1
- Welcome to Behavioral Finance
- Introduction to Classical Economics
- Utility of Money
- Omission Bias Case Study
- Expected Utility vs Prospect Theory
- Course Overview
- Utility of Money
- Omission Bias
- Answer Choice Explanations and Correct Answers for Week 1 Quiz
- Week 1 Quiz
- Week 2
- Correlation and Causation Error
- Probability Weighting
- Relative Probabilities
- The Availability Heuristic
- Mental Accounting and Expenditures
- Loss Aversion
- Belief Perseverance and Confirmation Bias
- Case Study: Belief Perseverance
- Problems with Probability
- Probability Weighting
- The Availability Heuristic
- Framing
- Representativeness
- Overconfidence
- Week 2 Quiz
- Week 3
- Introduction to Financial Decision Making
- Benefits of Saving Early
- Money Management
- Market Bubbles & Crashes
- Week 3 Quiz
Summary of User Reviews
Discover the intersection of behavioral finance and investment management in this course offered by Duke University. Students praise the course for its practical and applicable content, which is delivered by expert instructors in an engaging manner.Key Aspect Users Liked About This Course
The practical and applicable content of the coursePros from User Reviews
- Expert instructors with industry experience
- Great mix of theory and practical application
- Engaging and interactive course materials
- Valuable insights into behavioral finance and investment management
- Well-structured and organized course content
Cons from User Reviews
- Some of the content may be too technical for beginners
- Limited opportunities for peer interaction and collaboration
- The course may require a significant time commitment
- The course may not be suitable for those seeking a basic introduction to finance
- Some students may find the course material overwhelming
Emma Rasiel
4.4 Raiting
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