COURSE UNIT TITLE

: BEHAVIORAL FINANCE

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
FIB 5122 BEHAVIORAL FINANCE ELECTIVE 3 0 0 5

Offered By

Financial Economics and Banking

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

ASSOCIATE PROFESSOR ÜZEYIR AYDIN

Offered to

Financial Economics and Banking

Course Objective

The objective of this course is to introduce main essentials of behavioral finance as a new finance area. Rational investors and market efficiency subjects are interrogated. Studies and evidence about this course covers crucial topics in modern finance theory for financial decision makers.

Learning Outcomes of the Course Unit

1   to be able to understand main essentials of behavioral finance.
2   to be able to explain how investors psychology has an impact on individual investment behavior.
3   to be able to analyze investor psychology on risk tolerance.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 An Overview Behavioral Finance
2 Market Efficiency Hypothesis
3 Expected Utility Theory
4 Limits of Arbitrage- Theory
5 Historical and Experimental Bubbles
6 Market Anomalies
7 Investor Psychology and Behavior
8 Midterm
9 Term Structure Theory
10 Prospect Theory
11 Mental Accounting, Prospect Theory
12 Herding Behavior
13 Kahneman & Tversky
14 Shleifer & Fama

Recomended or Required Reading

- Shleifer, A. Inefficient Markets: An Introduction to Behavioral Finance, Oxford Univercity Press, 2000
- Forbes, W. Behavioral Finance, Wiley, 1 edition, 2009
- Kahneman, D. Slovic, P. Tversky, A. (eds.) Judgment under Uncertainty: Heuristics and biases, Oxford; New York: Oxford University Press, 1982
- Kahneman, D. Tversky, A. (eds.) Choices, Values and Frames; New York: Russell Sage Foundation, Cambridge UK: New York, Cambridge University Press, 2000
- Brealey, R. Myers, S. Marcus, A.; Principles of Corporate Finance , McGraw Hıll 2008
- Elton J. Edwin, Gruber Martin J.& others; Modern Portfolio Theory & Invesment Analysis, 7th edition, John Wiley & Sons, USA, 2007
Davranışsal Finans Teori Ve Finans, Osman Barak,Gazi Kitabevi, 2008.

Planned Learning Activities and Teaching Methods

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 STT TERM WORK (SEMESTER)
3 FIN FINAL EXAM
4 FCG FINAL COURSE GRADE MTE * 0.20 + STT * 0.30 + FIN* 0.50
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.20 + STT * 0.30 + RST* 0.50


Further Notes About Assessment Methods

None

Assessment Criteria

To be announced.

Language of Instruction

Turkish

Course Policies and Rules

To be announced.

Contact Details for the Lecturer(s)

uzeyir.aydin@deu.edu.tr

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Course 13 3 39
Take Home 1 10 10
Midterm preparation 1 30 30
Final Exam preparation 1 40 40
Presentation 3 5 15
Midterm 1 1 1
Final Exam 1 1 1
TOTAL WORKLOAD (hours) 136

Contribution of Learning Outcomes to Programme Outcomes

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LO.2555555555
LO.3555555555