Description of Individual Course Units
Course Unit CodeCourse Unit TitleType of Course UnitYear of StudySemesterNumber of ECTS Credits
1302007752014BEHAVIORAL FINANCEElective475
Level of Course Unit
First Cycle
Language of Instruction
English
Objectives of the Course
The objective of this course is to introduce main essentials of behavioral finance which is developed as a new finance area and against to efficient market hypothesis and to analyze the contribution of psychology to both economy and finance.
Name of Lecturer(s)
Learning Outcomes
1To be able to understand the differences between conventional finance theory and behavioral finance,
2To be able to understand the effects of psychological factors on investor behaviors,
3To be able to analyze the individual investors’ decisions those are made in the heat of behavioral tendencies.
Mode of Delivery
Face to Face
Prerequisites and co-requisities
None
Recommended Optional Programme Components
None
Course Contents
Behavioral finance analyses the effects of psychology to investor behavior. Also, it explores how various behavioral concepts such as behavioral frames, biases and heuristics impact individual investors’ decisions, market dynamics and corporate decision makings.
Weekly Detailed Course Contents
WeekTheoreticalPracticeLaboratory
1Conventional Finance Theory and Efficient Market Hypothesis
2Introduction to Behavioral Finance, Basic Concepts
3Historical Development of Behavioral Finance
4Expected Utility Theory
5Expectancy Theory
6Bayesian Learning Theory
7Market Anomalies
8Midterm
9Investor Behaviors and Biases – Self-Deception Biases
10Investor Behaviors and Biases – Self-Deception Biases
11Investor Behaviors and Biases – Emotional Biases
12Investor Behaviors and Biases – Cognitive Biases
13Investor Behaviors and Biases – Cognitive Biases
14Investor Behaviors and Biases – Social Biases
15Current Discussions in Behavioral Finance Area
16Final Exam.
Recommended or Required Reading
- Baker H. K. & Nofsinger J.R. (2010). Behavioral Finance: Investors, Corporations, and Markets, Kolb Series in Finance. - Barak, O. (2008). Davranışsal Finans Teori ve Finans, Gazi Kitabevi.
Planned Learning Activities and Teaching Methods
Assessment Methods and Criteria
Term (or Year) Learning ActivitiesQuantityWeight
SUM0
End Of Term (or Year) Learning ActivitiesQuantityWeight
SUM0
SUM0
Work Placement(s)
None
Workload Calculation
ActivitiesNumberTime (hours)Total Work Load (hours)
Midterm Examination10220
Final Examination20240
Attending Lectures16348
Practice14342
Individual Study for Mid term Examination122
Individual Study for Final Examination122
TOTAL WORKLOAD (hours)154
Contribution of Learning Outcomes to Programme Outcomes
PO
1
PO
2
PO
3
PO
4
PO
5
PO
6
PO
7
PO
8
PO
9
PO
10
LO13332323 34
LO22322343434
LO34322554434
* Contribution Level : 1 Very low 2 Low 3 Medium 4 High 5 Very High
 
Ege University, Bornova - İzmir / TURKEY • Phone: +90 232 311 10 10 • e-mail: intrec@mail.ege.edu.tr