Behavioral Finance Mastery: Decoding Financial Behavior
Unlock insights into human behavior shaping financial decisions with Behavioral Finance Mastery.What you'll learn
- Behavioral Finance vs Traditional Finance. Examination of Utility Theory and its Axioms. Exploration of Bayes Theory and its application.
- Discussion on the concept of Rational Economic Man. Understanding the Risk Aversion of Investors. Perspectives on Individuals in Behavioral Finance.
- Bounded Rationality and its impact. Prospect Theory and its Editing Phase. Analysis of the Isolation Effect with examples.
- Efficient Markets and Forms of Market Efficiency. Evaluation of the Efficient Market Hypothesis. Identification and discussion of Market Anomalies.
- Traditional Perspective of Portfolio Construction. Consumption and Savings Model. Behavioral Asset Pricing Model and Portfolio Theory.
- Understanding Cognitive vs Emotional Biases. Exploration of Cognitive Errors, including Perseverance, Information Processing, and Framing.
- Examination of Emotional Biases, such as Loss Aversion, Overconfidence, Control Bias, and Endowment Bias. Impact and mitigation of biases
- Discussion on Goals-Based Investing. Behavioral modification of Asset Allocation.
- Introduction and exploration of various models like Barnewall Two Way Model, BBK Five Way Model, and Pompian Model
- Dealing with Behavioral Investment Traits (BITs) and their limitations. Considerations for the Advisor-Client relationship.
- Insights into Portfolio Construction, including DC Plans and Behavioral Portfolio Indivisibility Show Mental Accounting.
- Analyst Forecasts and their influence on decision-making. Impact of Company Management on Analysis.
- Understanding Analyst Bias in Conducting Research. Insights into Investment Committees.
