Behavioral finance is the study of the influence of psychology on the behavior of financial practitioners. In this three-part behavioral finance course, you will learn about the wide range of decision making biases and information processing errors that influence our financial decision making.
Decision-making biases in behavioral finance
In this first section of the behavioral finance course, we explore how behavioral finance helps to explain market activity and the behavior of financial practitioners. By the end of this module, you will have a solid understanding of various behavioral biases including the overconfidence and optimism biases.
- Overview of decision-making biases and errors
- Reflective versus reflexive decision making
- The impact of overconfidence and optimism on decision making
Information processing errors in behavioral finance
In this second module of the course, we explore a wide range of behavioral biases and information processing errors. By the end of this module, you will have a solid understanding of the self-attribution, hindsight, confirmation and representative biases.
- Self-attribution and hindsight biases
- Confirmation and representative biases
- Guarding against the narrative fallacy
How financial decision making is impacted by others
In this third module of the course, we continue our exploration of various behavioral biases and errors as well as learning how decision making is impacted by others. By the end of this module, you will have a solid understanding of the anchoring bias, loss aversion, and herding behavior.
- Anchoring bias
- Loss aversion
- Herding versus independent thinking
This module incorporates sophisticated search and navigation tools that allow you to go at your own pace while pop quizzes get you to test what you have just learned. This course also includes a PDF reference guide – Behavioural financial glossary – that can be used while taking the course and downloaded to your computer for future reference.
Behavioral finance elective for financial analyst training
This behavioral finance course is designed to help you be well rounded in your analysis and help you become a complete financial analyst. This class is one of the elective courses for CFI’s financial analyst training program, which grants the Financial Modeling & Valuation Analyst (FMVA) accreditation.