BEHAVIORAL FINANCE

BF528

Course Code: BF528
Semester: -
Theory+Practice: 3 + 0
ECTS: 10

Course Type

Elective Course

Course Level

Master's Degree Without Thesis

Year of Study

Semester

ECTS

Name of Lecturer(s)

Associate Professor Çağrı Hamurcu

Learning Outcomes

At the end of this course, the students;

Understand that financial decisions are influenced by psychological factors.
Know the differences between classical economics and behavioral finance.
Explain market anomalies from a behavioral perspective.
Analyze why investors make irrational decisions.
Evaluate the efficient market hypothesis and its limitations.
Develop portfolio management strategies taking behavioral factors into account.
Enhance financial literacy and make more informed investment decisions.
Analyze financial data and draw conclusions.
Make financial decisions using critical thinking skills.
Keep up with current developments in financial markets.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

None

Course Description

The primary aim of this course is to teach students the importance of psychological factors in financial decision-making processes and the fundamental concepts of behavioral finance, while equipping them with the skills to analyze market anomalies and investor behaviors. The behavioral finance course not only provides a perspective for understanding the irrational side of the financial world, but also contributes to the development of more effective financial strategies for both individual and institutional investors.

Course Contents

WEEK	TOPICS
1^st Week	Introduction to behavioral finance
2^nd Week	The origin and development of behavioral finance
3^rd Week	Investment, efficient market hypothesis, capital asset pricing model (CAPM) and multi-factor models
4^th Week	Decision making, risk aversion
5^th Week	Mean-Variance rule
6^th Week	Utility theory
7^th Week	Prospect theory and risk perception
8^th Week	Midterm exam
9^th Week	Price and value
10^th Week	Cognitive biases
11^th Week	Cognitive biases
12^th Week	Emotional biases
13^th Week	Social biases, seasonal biases
14^th Week	Current behavioral finance research

Recommended or Required Reading

John R. Nofsinger (2010). Yatırım Psikolojisi: The Psychology of Investing. Nobel Akademik Yayıncılık.

Daniel Kahneman (2017). Hızlı ve Yavaş Düşünme. Varlık Yayınları.

Michael M. Pompian (2011). Behavioral Finance and Wealth Management: How to Build Investment Strategies That Account for Investor Biases, Wiley.

Planned Learning Activities and Teaching Methods

Lecture
Discussion
Questions/Answers
Presentation

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	35
Total(%)		35
Contribution of In-term Studies to Overall Grade(%)		35
Contribution of Final Examination to Overall Grade(%)		65
Total(%)		100

Language of Instruction

Turkish

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2	LO3	LO4	LO5	LO6	LO7	LO8	LO9	LO10
K1
K2
K3
K4
K5
K6
K7
K8
K9
K10