Applied Behavioural Finance

The Applied Behavioral Finance course aims at integrating behavioral finance into the financial planning process. The module begins with a discussion on the historical background of behavioral finance and its evolution. The different classifications of investors’ biases and heuristics are discussed together with the alternative arguments in favor of heuristics. The course covers bounded rationality and finally presents a discussion on the different behavioral investor types and the suitable approach to advice for each behavior type. The course ends with a discussion on how to incorporate behavioral finance into the investment planning process through a case study.