About this course: Through this course, you will learn how individuals and firms make financial decisions, and how those decisions might deviate from those predicted by traditional financial or economic theory. We will explore the nature of these biases and their origins, using insights from psychology, neurosciences and experimental economics on how the human mind works. From these biases, you will be able to examine how the insights of behavioral finance complement the traditional finance paradigm. We also look at the micro and macro biases. Finally, we will explore how these insights describe more complicated topics such as fat tail events and financial crises.
Created by: Indian School of Business
Taught by: Vaidya Nathan, Lecturer
Finance
| Basic Info | Course 3 of 5 in the Financial Markets and Investment Strategy Specialization |
| Level | Beginner |
| Language | English |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Behavioral Biases in Finance - Part 1
This module discusses the common behavioral biases experienced by individuals. All the biases are divided into 3 parts. After completing this module you will be able to explain different biases such as Overconfidence, Base rate neglect, Anchoring and adjustment, Cognitive Dissonance, Availability, Self-Attribution and Illusion of Control Bias.
8 videos, 2 readings
- Video: 0. Introduction
- Video: 1. Overconfidence Bias
- Video: 2. Representativeness Bias - Base rate neglect
- Video: 3. Anchoring and adjustment bias
- Video: 4. Cognitive Dissonance Bias
- Video: 5. Availability bias
- Video: 6. Self-Attribution Bias
- Video: 7. Illusion of Control Bias
- Reading: Using Behavioral Finance to Better Understand the Psychology of Investors
- Reading: The Mistakes We Make—and Why We Make Them
Graded: Assessment 1
WEEK 2
Behavioral Biases in Finance - Part 2
This module discusses the common behavioral biases experienced by individuals. All the biases are divided into 3 parts. This module deals with the second part. After completing this module, you will be able to explain different biases such as Conservatism, Ambiguity Aversion, Endowment, Self-control, Optimism, Mental accounting, Confirmation and Loss aversion.
8 videos, 2 readings
- Video: 8. Conservatism Bias
- Video: 9. Ambiguity Aversion Bias
- Video: 10. Endowment bias
- Video: 11. Self-Control Bias
- Video: 12. Optimism Bias
- Video: 13. Mental Accounting Bias
- Video: 14. Confirmation Bias
- Video: 15. Loss Aversion Bias
- Reading: Behavioral Finance: Theories and Evidence
- Reading: Fuel Your 401(k) with the Secrets of Behavioral Finance
Graded: Assessment 2
WEEK 3
Behavioral Biases in Finance - Part 3
This module discusses the common behavioral biases experienced by individuals. All the biases are divided into 3 parts. This module deals with the third part. After completing this module, you will be able to explain different biases such as Hindsight, Recency, Regret Aversion, Framing, Status Quo and sample size neglect.
7 videos, 2 readings
- Video: 16. Hindsight Bias
- Video: 17. Recency Bias
- Video: 18. Regret Aversion Bias 1
- Video: 19. Regret Aversion Bias 2
- Video: 20. Framing Bias
- Video: 21. Status Quo Bias
- Video: 22. Sample size neglect
- Reading: Women and Investing:A Behavioral Finance Perspective
- Reading: How Biases Affect Investor Behaviour
- Discussion Prompt: Hindsight Bias - Analyst Forecast
Graded: Assessment 3
WEEK 4
Psychographic models in Finance
This module discusses the 3 psychographic models in behavioral finance. After finishing this module you will be able to explain the three psychographic models and differentiate between them.
4 videos, 1 reading
- Video: Psychographic models 1
- Video: Psychographic models 2
- Video: Psychographic models 3
- Video: Conclusion
- Reading: Manipulate Me: The Booming Business in Behavioral Finance
- Discussion Prompt: Classifying investors into behavioral types
Graded: Comprehensive Assignment
FAQs
How It Works
Coursework
Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.
Help from Your Peers
Connect with thousands of other learners and debate ideas, discuss course material, and get help mastering concepts.
Certificates
Earn official recognition for your work, and share your success with friends, colleagues, and employers.
Creators
Indian School of Business
The Indian School of Business has successfully put India on the global map of management education by nurturing young leaders with an understanding of developing economies and the society at large. Through innovations in curricula and pedagogy to reflect the shifting business landscape, the ISB is committed to providing the best venue for management education to meet the growing need to develop young leaders who can manage global challenges.
Pricing
| Audit | Purchase Course | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Not available | Available |
| Receive a final grade | Not available | Available |
| Earn a shareable Course Certificate | Not available | Available |
Ratings and Reviews
Great Learning experience & informative!
This was really a great course and it has given me tool s for proper investment.
An informative course ; helps in understanding the fundamentals of Behavioral Investing.
Coursera provides universal access to the world’s best education, partnering with top universities and organizations to offer courses online.
© 2017 Coursera Inc. All rights reserved.
K
Excellent course and practical approach