Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS Credits
-1ITF366Behovioral Finance3+0+036

Course Details
Language of Instruction English
Level of Course Unit Bachelor's Degree
Department / Program International Trade and Finance (Eng)
Mode of Delivery Face to Face
Type of Course Unit Elective
Objectives of the Course The primary goal of this course is to teach students to question the efficient market hypothesis and introduce them with "behavioral finance," as an alternative approach to the study of financial markets.
Course Content Basic financial theories and assumptions, market efficiency, deviations from rationality and anomalies, expectation theory, cognitive and emotional biases.
Course Methods and Techniques (1) lecture, discussion lecture
(2) Case Study
Prerequisites and co-requisities None
Course Coordinator None
Name of Lecturers Asist Prof.Dr. Fatma Dural fatma.dural@gedik.edu.tr
Assistants None
Work Placement(s) No

Recommended or Required Reading
Resources Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets.
Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets.
Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets.

Course Category
Mathematics and Basic Sciences %10
Social Sciences %60
Field %30

Planned Learning Activities and Teaching Methods
Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria
In-Term Studies Quantity Percentage
Mid-terms 1 % 30
Quizzes 2 % 20
Project 1 % 10
Final examination 1 % 40
Total
5
% 100

 
ECTS Allocated Based on Student Workload
Activities Quantity Duration Total Work Load
Course Duration 14 3 42
Hours for off-the-c.r.stud 14 3 42
Mid-terms 1 15 15
Practice 2 10 20
Project 1 14 14
Final examination 1 20 20
Total Work Load   Number of ECTS Credits 6 153

Course Learning Outcomes: Upon the successful completion of this course, students will be able to:
NoLearning Outcomes
1 Describe different behavioral traits and their implications in investment decision making
2 Explain the modern finance theories and how they deviate in real life
3 Analyze financial markets by using behavioral finance concepts.


Weekly Detailed Course Contents
WeekTopicsStudy MaterialsMaterials
1 Introduction to Behavioral Finance Why Investors Are Irrational, According to Behavioral Finance? by Melissa In. https://www.toptal.com/finance/financial-analysts/investor-psychology-behavioral-biases Why Investors Are Irrational, According to Behavioral Finance? by Melissa In. https://www.toptal.com/finance/financial-analysts/investor-psychology-behavioral-biases
2 Fundamentals of behavioral finance-Cognitive biases James, M. (2006). Global Equity Strategy: Behaving Badly. James, M. (2006). Global Equity Strategy: Behaving Badly.
3 Fundamentals of behavioral finance-Cognitive biases Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 5. Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 5.
4 Fundamentals of behavioral finance-Cognitive biases Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 5. Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 5.
5 Fundamentals of behavioral finance-Cognitive biases Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 6. Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 6.
7 Fundamentals of behavioral finance-Cognitive biases Finding Success In Failure: Lessons From Ray Dalio Stephanie Denning https://www.forbes.com/sites/stephaniedenning/2018/01/23/is-success-found-in-failure-lessons-from-ray-dalio/?sh=b387d9919b9c Finding Success In Failure: Lessons From Ray Dalio Stephanie Denning https://www.forbes.com/sites/stephaniedenning/2018/01/23/is-success-found-in-failure-lessons-from-ray-dalio/?sh=b387d9919b9c
8 The Rise of the Rational Markets Hypothesis Fox, J., & Sklar, A. (2009). The myth of the rational market: A history of risk, reward, and delusion on Wall Street (p. xi). New York: Harper Business. Fox, J., & Sklar, A. (2009). The myth of the rational market: A history of risk, reward, and delusion on Wall Street (p. xi). New York: Harper Business.
9 Foundations of Rational Finance Expected Utility Theory Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, “Foundations of Finance I: Expected Utility Theory”, Chapter 1. Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, “Foundations of Finance I: Expected Utility Theory”, Chapter 1.
10 Modern Corporate Finance Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 15. Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 15.
11 Modern Portfolio theory Markowitz, H. M. (1991). Foundations of portfolio theory. The journal of finance, 46(2), 469-477 Markowitz, H. M. (1991). Foundations of portfolio theory. The journal of finance, 46(2), 469-477
12 Capital Asset Pricing Model Brealey, R. A., Mayers, S. C., & Allen, F. (2011). Corporate Finance,“Portfolio Theory and the Capital Asset Model Pricing”, Chapter 8, (Pages: 195-199) Brealey, R. A., Mayers, S. C., & Allen, F. (2011). Corporate Finance,“Portfolio Theory and the Capital Asset Model Pricing”, Chapter 8, (Pages: 195-199)
13 Random Walk and Efficient Markets Hypothesis Available at ue.gedik.edu.tr Available at ue.gedik.edu.tr
14 Foundations of Rational Finance Agency Theory And The Influence Of Psychology Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 2, (Pages:31-33) Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 2, (Pages:31-33)


Contribution of Learning Outcomes to Programme Outcomes
P1 P2 P3 P4 P5 P6 P7
All 4 3 1 2 2 1 2
C1 3 2 1 1 1 1 2
C2 5 3 1 1 1 1 1
C3 4 2 2 3 3 1 2

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