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State Bank of India via edX

Introduction to Behavioural Finance

Overview

Behavioural Finance is not just another branch of finance. It is the study of the influence of psychology on the behavior of human beings in their financial decision-making. It helps us in studying its subsequent effects on the financial markets. It highlights the fact that human beings are not always rational, have limits to their self-control, and are influenced by their own biases. It is the study of how investors systematically make errors in judgement, or “mental mistakes”. Behavioural f...

What you'll learn

  • How wide range of decision-making biases and information processing errors impact our financial decision-making
  • How behavioural finance impacts financial markets
  • The most common self-deception biases, their causes, and potential measures to prevent them
  • Cognitive biases and their root causes with real life examples
  • The most common emotional biases and their causes with examples
  • How loss aversion and other biases that contribute to our financial decision- making
  • How herding bias and other social factors interfere with our decision-making

Syllabus 3

  1. Entropic Mind Leading to Self-Deception
  2. Cognitive Biases in Financial Decision Making
  3. Emotional and Social Biases in Financial Decision Making

Skills you'll practise

Case StudyInfluencing SkillsInvestmentsDecision MakingFinancial MarketPsychologyFinanceEconomicsSelf-Control

Advantages and disadvantages

Advantages

  • University courses you can audit for free, with lectures, readings and practice quizzes.
  • A verified certificate from the university if you pay for it.
  • Self-paced: start any time.
  • A clear syllabus (3 parts) you can see before you start.

Disadvantages

  • Graded assignments and the certificate need the paid track.
  • Audit access can expire a few weeks after the course ends.
  • Learning is free, but the certificate costs money.
  • Some parts (graded work, certificate) are paid.

Some points apply to every course of this kind; see how we rank.

Free to audit

  • Free: Choose "Audit this course" when you enrol: lectures, readings and practice are free.
  • Paid: Graded assignments and the verified certificate (Certificate $99). Audit access may end after the course closes.

Taught by

  • Rudrabhatla LalithaDGM & Senior Faculty
  • Pankaj Kumar JalanFaculty
  • Dr. Bindu K. NambiarFaculty
  • Rahul SaxenaFaculty

State Bank of India is in Tier 4: commercial training companies and platform-made courses of our institution ranking (64/100).

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