By the end of this course, learners will be able to analyze investor behavior, evaluate decision-making under risk and uncertainty, apply behavioral finance theories to real-world market scenarios, and design behaviorally informed investment and portfolio strategies.
This course provides a comprehensive exploration of behavioral finance by integrating psychological insights with traditional financial theory. Learners will examine why investors deviate from rational decision-making models and how cognitive and emotional biases influence individual choices, market outcomes, and asset prices. Core concepts such as utility theory, prospect theory, market efficiency, and behavioral asset pricing are explained alongside practical frameworks for identifying and mitigating behavioral biases.
Through structured modules, real-world examples, and applied investment models, learners gain the skills needed to assess investor risk preferences, interpret market anomalies, and align portfolios with behavioral goals. The course uniquely bridges theory and practice by covering investor classification models, advisor-client dynamics, and behaviorally modified asset allocation strategies.
Designed for finance professionals, analysts, and learners seeking practical decision-making skills, this course equips participants with actionable tools to improve investment judgment, portfolio discipline, and long-term financial outcomes in real market environments.
This module introduces the fundamentals of behavioral finance by contrasting it with traditional finance, exploring utility theory, probability-based decision-making, and the concept of rational economic behavior.
What's included
7 videos4 assignments
Show info about module content
7 videos•Total 55 minutes
Introduction Behavioral Finance•10 minutes
Behavioral Finance Vs Traditional Finance•9 minutes
Utility Theory and its Axioms•8 minutes
Utility Theory and its Axioms Continues•6 minutes
Bayes Theory and Example•9 minutes
Bayes Theory and Utility•5 minutes
Rational Economic Man•9 minutes
4 assignments•Total 60 minutes
Introduction to Behavioral Finance•10 minutes
Utility Theory and Rationality•10 minutes
Probability, Rational Man, and Risk•10 minutes
Graded - Foundations of Behavioral Finance•30 minutes
Risk, Preferences, and Individual Behavior
Module 2•2 hours to complete
Module details
This module examines investor risk preferences, decision-making under uncertainty, and the foundational principles of prospect theory that explain deviations from rational behavior.
What's included
7 videos4 assignments
Show info about module content
7 videos•Total 56 minutes
Risk Aversion of Investors•9 minutes
Behavioral Finance Perpectives on Individuals•7 minutes
Prospect and Decision Making Theory•11 minutes
Bounded Rationality•4 minutes
Prospect Theory - Editing Phase•9 minutes
Isolation Effect•7 minutes
Example of Isolation Effect•9 minutes
4 assignments•Total 60 minutes
Risk Attitudes and Investor Behavior•10 minutes
Decision Making Under Uncertainty•10 minutes
Prospect Theory Foundations•10 minutes
Graded - Risk, Preferences, and Individual Behavior•30 minutes
Markets, Efficiency, and Anomalies
Module 3•1 hour to complete
Module details
This module explores market efficiency concepts and examines market anomalies that challenge the assumptions of fully efficient and rational markets.
What's included
4 videos3 assignments
Show info about module content
4 videos•Total 29 minutes
Efficient Markets and Forms of Market Efficiency•7 minutes
Efficient Market Hypothesis•7 minutes
Market Anomalies•8 minutes
Market Anomalies Continues•7 minutes
3 assignments•Total 50 minutes
Market Efficiency Concepts•10 minutes
Understanding Market Anomalies•10 minutes
Graded - Markets, Efficiency, and Anomalies•30 minutes
Traditional vs Behavioral Portfolio Thinking
Module 4•2 hours to complete
Module details
This module contrasts traditional portfolio theory with behavioral approaches, including consumption models, behavioral asset pricing, and adaptive market perspectives.
What's included
6 videos4 assignments
Show info about module content
6 videos•Total 50 minutes
Traditional Perspective of Portfolio Construction•9 minutes
Consumption and Savings Model•9 minutes
Behavioral Asset Pricing Model•5 minutes
Behavioral Portfolio Theory•12 minutes
Adaptive Market Hypothesis•7 minutes
Types of Analysis•8 minutes
4 assignments•Total 60 minutes
Traditional Portfolio and Consumption Models•10 minutes
Behavioral Asset and Portfolio Models•10 minutes
Adaptive and Analytical Perspectives•10 minutes
Graded - Traditional vs Behavioral Portfolio Thinking•30 minutes
Decision Theories and Risk Preferences
Module 5•2 hours to complete
Module details
This module deepens understanding of utility theory, prospect theory, and the key differences between behavioral and traditional decision-making frameworks.
What's included
7 videos4 assignments
Show info about module content
7 videos•Total 55 minutes
Utility Theory•8 minutes
Risk Aversion Levels•8 minutes
Decision Making Theory•8 minutes
Prospect Theory•8 minutes
Prospect Theory Continue•8 minutes
Behavioural and Traditional Approach•8 minutes
Behavioural and Traditional Approach Continues•7 minutes
4 assignments•Total 60 minutes
Utility, Risk, and Decisions•10 minutes
Prospect Theory in Practice•10 minutes
Behavioral vs Traditional Approaches•10 minutes
Graded - Decision Theories and Risk Preferences•30 minutes
Cognitive and Emotional Biases
Module 6•2 hours to complete
Module details
This module identifies cognitive and emotional biases that affect investor judgment and evaluates their impact on financial decision-making and portfolio outcomes.
What's included
9 videos4 assignments
Show info about module content
9 videos•Total 69 minutes
Cognitive vs Emotional Biases•11 minutes
Cognitive Errors•8 minutes
Cognitive Errors Persevearence•8 minutes
Cognitive Errors - Information Processing•7 minutes
Cognitive Errors - Framing•7 minutes
EB - Loss Aversion•7 minutes
EB - Overconfidence•7 minutes
EB - Control Bias•7 minutes
Endowment Bias•6 minutes
4 assignments•Total 60 minutes
Cognitive Biases and Errors•10 minutes
Information Processing and Framing Biases•10 minutes
Emotional Biases and Their Impact•10 minutes
Graded - Cognitive and Emotional Biases•30 minutes
Behavioral Investing in Practice
Module 7•6 hours to complete
Module details
This module applies behavioral finance concepts to real-world investing, covering behavioral asset allocation, investor classification models, advisory practices, and market anomalies.
What's included
26 videos5 assignments
Show info about module content
26 videos•Total 250 minutes
Impact and Mitigation of Biases - For the Exam•8 minutes
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