Economics and Finance(English) | |||||
Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 |
Course Code: | FNCE404 | ||||||||
Course Name: | Behavioral Finance | ||||||||
Course Semester: |
Spring |
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Course Credits: |
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Language of instruction: | EN | ||||||||
Course Requisites: | |||||||||
Does the Course Require Work Experience?: | No | ||||||||
Type of course: | Department Elective | ||||||||
Course Level: |
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Mode of Delivery: | Face to face | ||||||||
Course Coordinator : | Prof. Dr. GÖKÇE TUNÇ | ||||||||
Course Lecturer(s): | |||||||||
Course Assistants: |
Course Objectives: | The objective of this course is to introduce the topics of efficient market hypothesis; long-term returns; random walk; prospect theory; psychological evidence into financial decisions; rationality concept; mispricing; bubbles; inefficient markets; financial market anomalies and theories; investor psychology; risk aversion; market crashes; agency problem; market overreaction. |
Course Content: | At the end of this course the students will be able to; • Identify basic concepts in behavioral finance. • Recognize the behavioral characteristics in financial decision-making. • Identify decision rules affecting investment behavior |
The students who have succeeded in this course;
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Week | Subject | Related Preparation |
1) | • Describe the course. • Welcome and course introduction • Define behavioral finance • Compare behavioral and traditional approaches to finance • Explain syllabus • What is behavioral finance? | none |
2) | • Discuss and explain earlier theories like modern portfolio theory, capital asset pricing model, arbitrage pricing theory, the random walk hypothesis, efficient market hypothesis in finance • Explain expected utility theory • Criticize efficient market hypothesis • Modern Portfolio Theory • Capital Asset Pricing Model • Arbitrage Pricing Theory • The Random Walk Hypothesis • Efficient Market Hypothesis | Review the syllabus. Read, in Forbes, chapter 1, p.1-14. |
Course Notes / Textbooks: | Behavioral Finance William Forbes, Wiley, 2010 ISBN-13: 978-0-470-02804-9 |
References: | Behavioral Finance William Forbes, Wiley, 2010 ISBN-13: 978-0-470-02804-9 |
Learning Outcomes | 1 |
2 |
3 |
4 |
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Program Outcomes | ||||||||
1) Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. | ||||||||
2) Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. | ||||||||
3) Explain the evolution of financial markets and institutions in a historical context and define how they operate. | ||||||||
4) Recognise the basic principles and regulations in the financial sector. | ||||||||
5) Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. | ||||||||
6) Recognise, interpret and discuss the current economic issues both at the national and global levels. | ||||||||
7) Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. | ||||||||
8) Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. | ||||||||
9) Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. |
No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
Program Outcomes | Level of Contribution | |
1) | Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. | 5 |
2) | Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. | 5 |
3) | Explain the evolution of financial markets and institutions in a historical context and define how they operate. | 2 |
4) | Recognise the basic principles and regulations in the financial sector. | 2 |
5) | Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. | 2 |
6) | Recognise, interpret and discuss the current economic issues both at the national and global levels. | 3 |
7) | Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. | 4 |
8) | Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. | 3 |
9) | Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. | 4 |
Peer Review | |
Expression | |
Brainstorming/ Six tihnking hats | |
Individual study and homework | |
Lesson |
Oral Examination | |
Homework | |
Application | |
Observation | |
Individual Project | |
Group project |
Semester Requirements | Number of Activities | Level of Contribution |
Midterms | 1 | % 40 |
Final | 1 | % 60 |
total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 40 | |
PERCENTAGE OF FINAL WORK | % 60 | |
total | % 100 |
Activities | Number of Activities | Workload |
Course Hours | 16 | 48 |
Study Hours Out of Class | 16 | 64 |
Project | 1 | 12 |
Quizzes | 4 | 8 |
Midterms | 1 | 15 |
Final | 1 | 22 |
Total Workload | 169 |