Economics and Finance(English)
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

General course introduction information

Course Code:

FNCE404

Course Name:

Behavioral Finance

Course Semester:

Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	6

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Department Elective

Course Level:

Bachelor

TR-NQF-HE:6. Master`s Degree

QF-EHEA:First Cycle

EQF-LLL:6. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Prof. Dr. GÖKÇE TUNÇ

Course Lecturer(s):

Course Assistants:

Course Objective and Content

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

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
1) • explain major concepts and issues in behavioral finance
2) • discuss how to apply these concepts in financial decision-making.
3) • describe how behavioral characteristics of individuals or firms affect their investment decisions
2 - Skills
Cognitive - Practical
1) • analyze the influence of investor psychology on risk tolerance
3 - Competences
Communication and Social Competence
Learning Competence
Field Specific Competence
Competence to Work Independently and Take Responsibility

Lesson Plan

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.

Sources

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

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3	4
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.

Course - Learning Outcome Relationship

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

Learning Activity and Teaching Methods

Peer Review
Expression
Brainstorming/ Six tihnking hats
Individual study and homework
Lesson

Assessment & Grading Methods and Criteria

Oral Examination
Homework
Application
Observation
Individual Project
Group project

Assessment & Grading

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

Workload and ECTS Credit Grading

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