Corporate Finance Institute – Behavioral Finance
Ever wondered about the psychology that drives capital markets? This course will introduce you to behavioral finance and how it impacts markets.
- Learn why behavioral is important to consider
- Understand biases and how they impact investment decisions
- Better tune your psychology to trade better
This course is the study of the influence of psychology on the behavior of financial practitioners. In the course, you will learn about the wide range of decision-making biases and information processing errors that influence our financial decision-making. We’ll start the course with what behavioral finance is and its impacts on financial markets.
We will then explore the most common self-deception biases, cognitive biases, and emotional biases. We will discuss their causes and potential measures you can take to manage them. We’ll finish the course by discussing loss aversion and herding bias.
This course is perfect for anyone who wants to be well-rounded in their analysis. This course is designed to equip anyone who desires to begin a career in fixed income, equity, sales and trading, or other areas of finance.
What You’ll Learn In Behavioral Finance?
- Understand what behavioral finance is, how it differs from modern finance, and how it impacts financial markets
- Describe the most common self-deception biases, their causes, and potential measures you can take to prevent them
- Understand cognitive biases and explore their root causes with real-life examples
- List the most common emotional biases and discuss their causes with examples
- Understand loss aversion and other biases that contribute to its effect
- Study the herding bias and other social factors that distort decision-making