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Program Type: 
Thesis
Course Code: 
FE 616
P: 
3
Lab: 
0
Credits: 
3
ECTS: 
10
Course Language: 
English
Course Objectives: 

This course aims to further strengthen this foundation by discussing recent developments in modeling economic decision-making processes and how they have shaped markets.

Course Content: 

In this course, behavioral finance theory, which examines the effects of human psychology on decision-making mechanisms in economics and finance, presented by Kahneman and Tverski, against classical economic theory and effective finance theory will be transferred to the students. The course content includes behavioral market hypothesis; rationalism; heuristic, probabilistic and framework methods; herd behavior theory; theory of pleasure and wealth; behavioral game theory; anomalies in economic behavior and market formations; is located.

Teaching Methods: 
1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study
Assessment Methods: 
A: Testing, B: Presentation C: Homework, D: Project, E: Laboratory

Vertical Tabs

Course Learning Outcomes

Course Learning Outcomes Program Learning Outcomes Teaching Methods Assessment Methods
Acquiring the necessary knowledge on traditional finance theories, financial asset pricing models and assumptions, and efficient market concept.   1,2,3 A,C
Covering the fundamentals of financial and economic decision making and the role of behavioral errors   1,2,3 A,C
Understanding the behavioral approach in financial markets   1,2,3 A,C
Examining various common behavioral mistakes in financial markets   1,2,3 A,C
Review of market anomalies and their consequences   1,2,3 A,C
Identifying and working on financial problems as a result of examining financial markets with a behavioral finance perspective   1,2,3 A,C

Course Flow

COURSE CONTENT
Week Topics Study Materials
1 INTRODUCTION  
2 BEHAVIOR FUNDAMENTALS OF FINANCE  
3 EVALUATION OF THE EFFECTIVE MARKET HYPOTHESIS  
4 INVESTOR BEHAVIORS  
5 CONFIRMATION BIAS  
6 MENTAL ACCOUNTING BIAS  
7 ON CONFIDENCE BIAS  
8 MIDTERM  
9 REPRESENTATIVE BIAS  
10 COGNITIVE DISC  
11 AVAILABILITY BIAS  
12 SELF-ATTRIBUTION BIAS  
13 GENERAL EVALUATION  
14 FINAL  

Recommended Sources

Course Note  
Other Resources Anderson, D.R. & Sweeney, D.J. & Williams, T.A., Essentials of Statistics for Business and Economics, 6th Ed., South-Western Cengage-Learning, 2010

Johnson, R.A., & Wichern, D.W, Applied Multivariate Statistical Analysis, 2th Ed., Prentice-Hall, 1998

Kalaycı, S., SPSS Uygulamalı Çok Değiskenli Istatistik Teknikleri, 1st Ed., Asil Yayın Dagıtım, 2005

Day, A.L., Mastering Risk Modeling, 2th Ed., Prentice-Hall, 2009

Shone, R., An Introduction to Economic Dynamics, 2th Ed.,  Cambridge University Press, 2003

Assessment

ASSESSMENT
IN-TERM STUDIES NUMBER PERCENTAGE
Mid-Term 1 100
Project    
Homework    
Final Exam 1 100
  Total 100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL
GRADE 		  50
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL
GRADE 		  50
  Total 100

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAMME
No Program Learning Outcomes Contribution
1 2 3 4 5
1  Students can keep themselves informed and analyze the current economic development in Turkey and in the world from an international political economy perspective paying a particular attention to the interaction of the Turkish economy with the global economy.     X     
2 Being aware of the development and accumulation of economic thought, students can master qualitative and quantitative knowledge and methods to test various economic theories that can be applied to the analysis of the current economic problems.      X     
3 Students can use statistical and econometric analyses by learning how to use information technologies that have validity and widespread use in the field of economics.      X     
4 By learning how to learn in the field of economics, students can research and work individually or as a team using the Turkish and English academic resources.       X   
5 Being aware of the ethical values, students know the individual, social and ecological dimensions of the concept of social responsibility and can prove that they understand the active citizenship duty that falls upon them within this framework.     X    
6 Students can clearly express, present and share their knowledge, the outcomes of their studies, their ideas and comments to people in their field or other disciplines/units using the necessary data, in national and international academic and professional environments, in Turkish or English.        X  

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION  
 
Activities Quantity Duration (Hour) Total Workload (Hour)  
Course Duration (Including the exam week: 15x Total
course hours/week) 		16 3 48  
Hours for off-the-classroom study (Pre-study, practice,
review/week) 		16 8 128  
Homework 0 0 0  
Mid-term 1 30 30  
Final 1 40 40  
Total Work Load     246  
Total Work Load / 25 (h)     9.84  
ECTS Credit of the Course     10  
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