Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS CreditsLast Updated Date
-1ITF366Behovioral Finance3+0+03625.04.2026

 
Course Details
Language of Instruction English
Level of Course Unit Bachelor's Degree
Department / Program International Trade and Finance (Eng)
Type of Program Formal Education
Type of Course Unit Elective
Course Delivery Method Face To Face
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 Lecture, Case Study, Discussion, Group Work
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.
Kahneman, D. (2011). Thinking, fast and slow.
Course Notes Kahneman, D. (2011). Thinking, fast and slow.
Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets.
Documents Kahneman, D. (2011). Thinking, fast and slow., 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 1 % 10
Project 1 % 20
Final examination 1 % 40
Total
4
% 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 Explain the basic concepts of behavioral finance (cognitive biases, emotional influences, limits of rationality, etc.).
2 Analyze the main psychological factors (perceptual biases, emotional states, social influences, etc.) that affect the financial decisions of investors and consumers
3 Explain the modern finance theories and how they deviate in real life
4 Evaluate the effects of behavioral finance on financial markets (market anomalies, price fluctuations, bubbles and crises, etc.).
5 Apply behavioral finance principles to their investment and financing decisions.

 
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 Kahneman, D. (2011). Thinking, Fast and Slow. Part 1: Two Systems (Chapters 1-4). Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 5.
4 Fundamentals of behavioral finance-Cognitive biases AKahneman, D. (2011). Thinking, Fast and Slow. Part 2: Heuristics and Biases (Chapters 10-13). Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 5.
5 Fundamentals of behavioral finance-Cognitive biases Kahneman, D. (2011). Thinking, Fast and Slow. Part 2: Heuristics and Biases (Chapters 14-18). Ackert, L., & Deaves, R. (2009). Behavioral finance: Psychology, decision-making, and markets, Chapter 6.
6 Foundations of Financial Behavior: Cognitive Biases Kahneman, D. (2011). Thinking, Fast and Slow. Part 4: Choices (Chapters 25-27: Prospect Theory). 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
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
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.
10 Modern Corporate Finance 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
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)
13 Random Walk and Efficient Markets Hypothesis 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)

 
Contribution of Learning Outcomes to Programme Outcomes
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12
All 4 3 2 2 2 1 3 1 1 1 1 2
C1 3 2 1 1 1 1 2 1 1 1 1 2
C2 3 2 1 1 1 1 2 1 1 1 1 2
C3 5 3 2 2 3 1 3 1 1 1 1 2
C4 5 3 2 2 3 1 3 1 1 1 1 2
C5 4 3 2 2 3 1 3 1 1 1 1 2

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