Behavioral Finance Video Course
Behavioral finance has shown that all people, even financial experts, are prone to making irrational and suboptimal financial decisions. This course is a discussion of how people have wants that extend far beyond traditional finances’ assumption of wanting the highest return at the lowest risk. We are not perfectly rational economic robots; we are easily driven by many wants and emotions while working with limited time, knowledge, and energy.
This course explores many of the thinking errors and biases exhibited by all people, even the experts. You’ll be able to identify the nonfinancial wants that drive the financial decisions of your clients. We’ll then identify ways to improve financial decision-making in the contexts of personal financial planning and business financial management.
You’ll learn from an author that teaches these concepts to MBA students at a university as well as to business advisors and staff. He is a CPA that’s been a CFO of multiple companies. Rob also has a master’s degree in personal financial planning and a graduate certificate in financial therapy. He served as program manager for a group of investment advisors.
This course will lead you from foundational finance concepts to practical applications in both personal finance and business finance.
Course information
Price: $49
Course No. S006
Format: Online video with final exam
Instructional Delivery Method: QAS Self-Study
Prerequisites: None
Advance Preparation: None
Level: Overview
CPE Credit: 5 hrs.
Field of Study: Finance: Technical
Course expiration: You have one year from date of purchase to complete the course.
Course Review/Revision Date: April 2024
Objectives
After completing this course, participants should be able to:
- Recognize common behavioral finance biases and heuristics
- Identify ways to reduce thinking errors caused by biases and heuristics
- Recall differences between traditional finance and behavioral finance
- Identify negative financial impacts of finance biases and heuristics
Behavioral Finance Table of Contents
Sec 1 Introduction
Sec 2 The Emergence of Behavioral Finance
Some Basics on Traditional Economics
The Emergence of Behavioral Finance
Sec 3 How We Think
How We Think
Prospect Theory
Framing
Sec 4 Biases and Heuristics
What are Biases and Heuristics?
Overconfidence
Confirmation Bias, Hindsight Bias, and Sunk Costs
Self-Attribution and Excessive Optimism
The Endowment Effect, Omission Bias, and Status Quo Bias
Familiarity Bias and In-Group Bias
Mental Accounting
Fairness
Anchoring and Adjustment
Disposition Effect
Representativeness
Emotions, Mood, and Affect
Market Observations and Anomalies
Sec 5 Some Applications
Personal Financial Decisions: Investor Wants
Personal Financial Decisions: Behavioral Life-Cycle Planning
Personal Financial Decisions: Correcting Errors
Business Financial Decisions: Overview
Business Financial Decisions: Planning and Projects
Retirement Planning and Savings
Pricing
Sec 6 Key Takeaways
Ratings and Reviews
Barry Sims
The course describes the perceptual errors that investors and business managers make. I knew some of these concepts from previous courses and use them to advise clients more often than I would like. However, knowing them adds considerable value to my services.
Lenders should make this a prerequisite to lending to startups.