Behavioral Finance

Area

Analytical & Planning

Cost (€)

Hours

Skills

Behavioural finance

Topic

Finance

What is this about:

How wide range of decision-making biases and information processing errors impact our financial decision-making
How behavioural finance impacts financial markets
The most common self-deception biases, their causes, and potential measures to prevent them
Cognitive biases and their root causes with real life examples
The most common emotional biases and their causes with examples
How loss aversion and other biases that contribute to our financial decision- making
How herding bias and other social factors interfere with our decision-making

Course:

State-Bank-of-India: Introduction to Behavioural Finance

Behavioural Finance is not just another branch of finance. It is the study of the influence of psychology on the behavior of human beings in their financial decision-making. It helps us in studying its subsequent effects on the financial markets. It highlights the fact that human beings are not always rational, have limits to their self-control, and are influenced by their own biases. It is the study of how investors systematically make errors in judgement, or “mental mistakes”. Behavioural finance is a relatively new field in economics and has become an interesting topic for investment professionals.

www.edx.org

State-Bank-of-India: Introduction to Behavioural Finance

Deliverables:

Certification
Presentation with most important findings