Rice University

Biases and Portfolio Selection

This course is part of Investment and Portfolio Management Specialization

Taught in English

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Arzu Ozoguz

Instructor: Arzu Ozoguz

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Course

Gain insight into a topic and learn the fundamentals

4.6

(271 reviews)

15 hours (approximately)
Flexible schedule
Learn at your own pace

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Assessments

9 quizzes

Course

Gain insight into a topic and learn the fundamentals

4.6

(271 reviews)

15 hours (approximately)
Flexible schedule
Learn at your own pace

See how employees at top companies are mastering in-demand skills

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This course is part of the Investment and Portfolio Management Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 4 modules in this course

This module introduces the third course in the Investment and Portfolio Management Specialization. In this module, we first present the efficient market hypothesis (EMH) – another pillar idea of modern finance. You will learn about its rationale as well as the empirical evidence that supports and challenges the predictions of the EMH such as anomalies. Finally, we will consider why smart money may sometimes fail to exploit away anomalies in financial markets.

What's included

9 videos12 readings3 quizzes1 peer review1 discussion prompt

In this module, we review the behavioral critique of market rationality. In contrast to the presumption that investors are rational, behavioral finance starts with the assumption that they are not. We will examine some of the information-processing and behavioral biases uncovered by psychologists in several contexts. In addition, we will consider alternative, more realistic ways of describing investor preferences.

What's included

12 videos10 readings2 quizzes

In this module, we review a number of puzzles related to the aggregate stock market and the cross-section of average stock returns that have been documented in the literature. We examine how the behavioral biases and tendencies discussed in the previous module might result in some of these puzzles observed in financial markets.

What's included

9 videos2 readings2 quizzes2 peer reviews

In this last brief module, we turn our attention to the behavior of individual investors and review the empirical evidence on how behavioral biases and tendencies we discussed in the previous modules affect individual investor portfolio choice and trading decisions.

What's included

6 videos3 readings2 quizzes

Instructor

Instructor ratings
4.5 (22 ratings)
Arzu Ozoguz
Rice University
4 Courses137,789 learners

Offered by

Rice University

Recommended if you're interested in Finance

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4.6

271 reviews

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AM
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Reviewed on Jun 19, 2019

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Reviewed on Mar 26, 2020

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