Behavioral Finance

Program Type:

Thesis

Non Thesis

Course Code:

FE 516

P:

3

Lab:

0

Credits:

3

ECTS:

10

Course Language:

English

Course Content:

The course content is as follows in weekly order: Introduction: Behavioral Trends, Simple Heuristics for Complex Choices, Risky Choices, Learning from New Information, Efficient Markets Hypothesis, Market Model "CAPM", "Noise" Traders and the Law of Single Price, Noise Trading Shleifer Model, Noise Trading Feedback Models, Herd Motive Models, Rational Human, Prospect Theory, Multiple Stock Models.

Teaching Methods:

1: Lecture, 2: Question-Answer, 3: Discussion, 4: Simulation, 5: Case Study

Assessment Methods:

A: Testing, B: Experiment, C: Homework, Q: Quiz

Vertical Tabs

Course Learning Outcomes

Learning Outcomes	Programme Learning Outcomes	Teaching Methods	Assessment Methods


Acquiring the necessary knowledge on traditional finance theories, financial asset pricing models and assumptions, and efficient market concept.	1,2,3,5	1,2,3	A, C
Covering the fundamentals of financial-economic decision making and the role of behavioral errors	1,2,3,5	1,2,3	A, C
Understanding the behavioral approach in financial markets	1, 5	1,2,3	A, C
Examining various common behavioral mistakes in financial markets	1, 5	1,2,3	A, C
Review of market anomalies and their consequences	1, 2, 5	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, 5	1,2,3	A, C

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Introduction: Behavioral Trends	Chapter 1
2	Simple Heuristics for Complex Choices	Chapter 2
3	Risky Choices	Chapter 3
4	Learning from New Information	Chapter 4
5	Efficient Markets Hypothesis	Chapter 5
6	Market Model "CAPM"	Chapter 6
7	Midterm Exam
8	"Noise" Traders and the Law of One Price	Chapter 7
9	Noise Trading Shleifer Model	Chapter 8
10	Noise Trading Feedback Models	Chapter 9
11	Models of Herd Motivation	Chapter 10
12	Rational Humans	Chapter 11
13	Prospect Theory	Chapter 12
14	Multiple Stock Models
15	Final Exam	All Content

Recommended Sources

RECOMMENDED SOURCES
Textbook			Behavioral Finance Understanding the Social, Cognitive, and Economic Debates, Edwin T. Burton Sunit N. Shah, 2013, Wiley Behavioral Economics, Edward Cartwright, Third Edition 2018, Routledge
Additional Resources			Course Notes Course website, lecture notes, financial markets laboratory, financial calculator, online resources, excel type software.

Material Sharing

MATERIAL SHARING
Documents			Guidelines and additional examples for Lecture Topics and Homework Assignments
Assignments			Homework assignments
Exams			Midterm Exam and Final Exam

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Mid-Term	1	20
Class Performance	6	20
Final Exam	1	60
	Total	100
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		60
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		40
	Total	100

COURSE CATEGORY	Expertise/Field Courses

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAMME
No	Program Learning Outcomes	Contribution
No	Program Learning Outcomes	1	2	3	4	5
1	To comprehend the basic principles of finance and to be able to apply these principles in national and international areas.					X
2	To use modern information technologies and current financial tools effectively.				X
3	To comprehend the ethical rules and social responsibility understanding accepted by financial professional organizations and to apply them in the decisions to be taken.		X
4	To have the infrastructure that will enable them to do business in multicultural, multilingual and interdisciplinary environments.			X
5	To have information about the markets and the functioning of the markets and to analyze the developments in these markets.			X	X
6	To recognize the management tools and models specific to multinational companies and to be able to apply them where necessary.
7	To understand the structure of the global economic system and to analyze how new developments will affect this structure.		X
8	To be able to use the ability of critical thinking in the decision making process.		X
9	To transfer the acquired leadership, teamwork and communication skills to the lifelong learning process.
10	To be able to manage the process with analytical and creative approaches by anticipating the opportunities and problems that dynamic working conditions may create.

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	4	96
Homework	5+1(Proje)	60	60
Mid-term	1	10	20
Final	1	15	30
Total Work Load			254
Total Work Load / 25 (h)			10.16
ECTS Credit of the Course			10

Search form