Behavioral Finance(GE 754)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| GE 754 | Behavioral Finance | 2 | 3 | 0 | 0 | 3 | 7 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | Turkish |
| Course Type | Elective |
| Course Level | Doctoral Degree |
| Course Instructor(s) | Ömür SÜER omursuer@hotmail.com (Email) |
| Assistant | |
| Objective | The objective of the course is to introduce the students to the field of behavioral finance, which is a growing field of finance. |
| Content |
Week 1 : Introduction to “behavioral finance” Week 2 : A general look at traditional finance theories (expected utility theory, modern portfolio theory) Week 3 : A general look at traditional finance theories (market efficiency, CAPM, APT) Week 4 : Introduction to foundations of behavioral finance Week 5 : Rationality versus bounded rationality Week 6 : First building block of behavioral finance: Limits to arbitrage Week 7 : Fundamental risk, noise trader risk Week 8 : Partial exam Week 9 : Second building block of behavioral finance: Psychology Week 10 : Systematic biases / beliefs / overconfidence, over-optimism, representativeness, conservatism, belief perseverance, anchoring, etc. Week 11 : Systematic biases / preferences / prospect theory, ambiguity aversion Week 12 : Mental accounting Week 13 : Applications Week 14 : Review for final exam |
| Course Learning Outcomes |
At the end of the course, students should: 1. have a good understanding of the major concepts and topics of behavioral finance. 2. be able to comprehend how the behavioral characteristics of individuals impact their investment decisions. 3. be able to understand the price formation mechanism in financial markets. 4. be able to understand the contents of mostly cited academic papers in the field of behavioral finance. 5. be able to capture the theoretical models in behavioral finance literature and utilize them in research studies. |
| Teaching and Learning Methods | |
| References |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction to “behavioral finance” |
| 2 | A general look at traditional finance theories (expected utility theory, modern portfolio theory) |
| 3 | A general look at traditional finance theories (market efficiency, CAPM, APT) |
| 4 | Introduction to foundations of behavioral finance |
| 5 | Rationality versus bounded rationality |
| 6 | First building block of behavioral finance: Limits to arbitrage |
| 7 | Fundamental risk, noise trader risk |
| 8 | Partial exam |
| 9 | Second building block of behavioral finance: Psychology |
| 10 | Systematic biases / beliefs / overconfidence, over-optimism, representativeness, conservatism, belief perseverance, anchoring, etc. |
| 11 | Systematic biases / preferences / prospect theory, ambiguity aversion |
| 12 | Mental accounting |
| 13 | Applications |
| 14 | Review for final exam |
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 0 | 60 |
| Contribution of final exam to overall grade | 0 | 40 |
| Toplam | 0 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 10 | 15 |
| Presentation | 5 | 5 |
| Midterm Examinations (including preparation) | 1 | 30 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 0 | 0 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 10 |
| Toplam | 16 | 60 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 3 | 42 |
| Working Hours out of Class | 10 | 6 | 60 |
| Assignments | 10 | 2 | 20 |
| Presentation | 5 | 1 | 5 |
| Midterm Examinations (including preparation) | 1 | 20 | 20 |
| Final Examinations (including preparation) | 1 | 28 | 28 |
| Total Workload | 175 | ||
| Total Workload / 25 | 7,00 | ||
| Credits ECTS | 7 | ||