ECTS - Behavioral Finance
Behavioral Finance (MAN314) Course Detail
| Course Name | Course Code | Season | Lecture Hours | Application Hours | Lab Hours | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| Behavioral Finance | MAN314 | Area Elective | 3 | 0 | 0 | 3 | 5 |
| Pre-requisite Course(s) |
|---|
| None |
| Course Language | English |
|---|---|
| Course Type | Elective Courses |
| Course Level | Bachelor’s Degree (First Cycle) |
| Mode of Delivery | Face To Face |
| Learning and Teaching Strategies | Lecture, Discussion. |
| Course Lecturer(s) |
|
| Course Objectives | The primary objective of this course is to offer a comprehensive overview of the behavioral foundations underlying financial decision-making and their practical applications within the field of finance. Behavioral finance, an emergent yet rapidly expanding discipline, endeavors to elucidate economic decisions that deviate from the predictions of traditional economic and financial theories. This field provides insights into various seemingly irrational and inconsistent patterns observed in investor behavior, financial markets, and corporate management, thereby complementing conventional paradigms. |
| Course Learning Outcomes |
The students who succeeded in this course;
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| Course Content | The course begins with an examination of standard finance theories, with a particular focus on the efficient market hypothesis. Subsequently, it addresses a range of financial market phenomena that are challenging to explain through traditional theories alone covering cognitive biases and heuristics. The course then transitions to more realistic market dynamics, exploring alternative theoretical frameworks to enhance our understanding of the observed behaviors in financial markets and among thei |
Weekly Subjects and Releated Preparation Studies
| Week | Subjects | Preparation |
|---|---|---|
| 1 | Introduction to the course | Gain information about the general content and fundamental concepts of the course. |
| 2 | Rational Markets Hypothesis and the Challenge by Behavioralists | Research the core concepts of the Efficient Market Hypothesis and Behavioral Finance. |
| 3 | Foundations of Rational Finance | Learn the fundamentals and main principles of Rational Finance. |
| 4 | Prospect Theory and Mental Accounting | Gather information on Expectation Theory and Mental Accounting concepts. |
| 5 | Prospect Theory and Mental Accounting Cont’d. | Obtain deeper knowledge on Expectation Theory and Mental Accounting. |
| 6 | Challenges to Efficient Market Hypothesis | Research criticisms and challenges to the Efficient Market Hypothesis. |
| 7 | Heuristics and Biases | Acquire detailed information on heuristics and biases and review relevant applications. |
| 8 | Midterm Week | Review and summarize previous topics in preparation for the midterm exam. |
| 9 | Heuristics and Biases Cont’d. | Collect information on applications and theories related to heuristics and biases. |
| 10 | Overconfidence | Learn about overconfidence and its effects, and research examples. |
| 11 | Emotional Factors and Social Forces | Gather information on the impact of emotional factors and social forces on investment decisions. |
| 12 | Investor Behavior | Study investor behavior and its effects on the market. |
| 13 | Market Outcomes | Investigate market outcomes and the impact of Behavioral Finance on markets. |
| 14 | Behavioral Corporate Finance | Learn about Behavioral Corporate Finance topics and review examples. |
| 15 | Review | Review and summarize all course topics. |
| 16 | Final Exam | Revise all topics and prepare thoroughly for the final exam. |
Sources
| Course Book | 1. Ackert, L. and Deaves, R. (2010), Behavioral Finance: Psychology, Decision-Making, and Markets, International Edition, South-Western. |
|---|---|
| Other Sources | 2. Chandra, P. (2018), Behavioral Finance (1st Ed.), McGraw-Hill. |
Evaluation System
| Requirements | Number | Percentage of Grade |
|---|---|---|
| Attendance/Participation | - | - |
| Laboratory | - | - |
| Application | - | - |
| Field Work | - | - |
| Special Course Internship | - | - |
| Quizzes/Studio Critics | - | - |
| Homework Assignments | - | - |
| Presentation | - | - |
| Project | 1 | 20 |
| Report | - | - |
| Seminar | - | - |
| Midterms Exams/Midterms Jury | 1 | 40 |
| Final Exam/Final Jury | 1 | 40 |
| Toplam | 3 | 100 |
| Percentage of Semester Work | 60 |
|---|---|
| Percentage of Final Work | 40 |
| Total | 100 |
Course Category
| Core Courses | X |
|---|---|
| Major Area Courses | |
| Supportive Courses | |
| Media and Managment Skills Courses | |
| Transferable Skill Courses |
The Relation Between Course Learning Competencies and Program Qualifications
| # | Program Qualifications / Competencies | Level of Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | Acquiring the skills of understanding, explaining, and using the fundamental concepts and methods of economics | |||||
| 2 | Acquiring the skills of macro level economic analysis | |||||
| 3 | Acquiring the skills of micro level economic analysis | |||||
| 4 | Understanding the formulation and implementation of economic policies at the local, national, regional, and/or global level | |||||
| 5 | Learning different approaches on economic and related issues | |||||
| 6 | Acquiring the quantitative and/or qualitative techniques in economic analysis | |||||
| 7 | Improving the ability to use the modern software, hardware and/or technological devices | |||||
| 8 | Developing intra-disciplinary and inter-disciplinary team work skills | |||||
| 9 | Acquiring an open-minded behavior through encouraging critical analysis, discussions, and/or life-long learning | |||||
| 10 | Adopting work ethic and social responsibility | |||||
| 11 | Developing the skills of communication. | |||||
| 12 | Improving the ability to effectively implement the knowledge and skills in at least one of the following areas: economic policy, public policy, international economic relations, industrial relations, monetary and financial affairs. | |||||
ECTS/Workload Table
| Activities | Number | Duration (Hours) | Total Workload |
|---|---|---|---|
| Course Hours (Including Exam Week: 16 x Total Hours) | 16 | 3 | 48 |
| Laboratory | |||
| Application | |||
| Special Course Internship | |||
| Field Work | |||
| Study Hours Out of Class | 14 | 2 | 28 |
| Presentation/Seminar Prepration | |||
| Project | 1 | 14 | 14 |
| Report | |||
| Homework Assignments | |||
| Quizzes/Studio Critics | |||
| Prepration of Midterm Exams/Midterm Jury | 1 | 10 | 10 |
| Prepration of Final Exams/Final Jury | 1 | 25 | 25 |
| Total Workload | 125 | ||