Behavioral Finance

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Intermediate level

Approx 4h to complete

100% online and self-paced

Subscribe to get access to CMSA® and other programs

From $497/year

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Overview

Behavioral Finance Course Overview

Behavioral finance is the study of the influence of psychology on the behavior of financial practitioners. In the course, you will learn about the wide range of decision making biases and information processing errors that influence our financial decision making.

We’ll start the course with what behavioral finance is and how it impacts on financial markets. We will then explore the most common self-deception biases, cognitive biases, and emotional biases. We will discuss their causes and potential measures you can take to manage them. We’ll finish the course by discussing loss aversion and the herding bias.



Learning Objectives

Upon completing this course, you will be able to:

  • Understand what behavioral finance is, how it differs from modern finance, and how it impacts on financial markets
  • Describe the most common self-deception biases, their causes, and potential measures you can take to prevent them
  • Understand cognitive biases and explore their root causes with real life examples
  • List the most common emotional biases and discuss their causes with examples
  • Understand loss aversion and other biases that contribute to its effect
  • Study the herding bias and other social factors that distort decision-making



Behavioral Finance Is an Elective Course of CFI’s CMSA® Program

CFI’s Capital Markets & Securities Analyst (CMSA)® program covers all the basic, intermediate, and advanced topics about sales and trading, investment banking, and asset management. This program teaches you trading strategies used in the finance and capital markets industry. It is ideal for students who want to learn how to trade different asset classes. The program is completely online so you can take it at your own pace, from anywhere in the world.

Common career paths for students who take the CMSA® are Sales & Trading, Asset Management, Wealth Management, Treasury, Risk Management, and other capital markets careers.



Who Should Take This CMSA® Course?

This Behavioral Finance course is perfect for anyone who wants to be well rounded in their analysis. This course is designed to equip anyone who desires to begin a career in fixed income, equity, sales and trading, or other areas of finance.

What You'll Learn

Lesson
Multimedia
Exams
Files
Cognitive Biases
Overview of Cognitive Biases
2008 Global Financial Crisis Exercise
2008 Global Financial Crisis Poll
2008 Global Financial Crisis Exercise (cont.)
Hindsight Bias
Hindsight Bias Case Study
Interactive Exercise 6
Self-Attribution Bias
Self-Attribution Bias Case Study FREE PREVIEW
How Can We Guard Against Self-Attribution & Hindsight Bias
International News Exercise
International News Poll
International News Exercise (cont.)
Confirmation Bias
Confirmation Bias Case Study
Confirmation Bias Exercise
Confirmation Bias Poll
Confirmation Bias Exercise (cont.)
How Can We Guard Against Confirmation Bias FREE PREVIEW
Interactive Exercise 7
Finding Patterns Exercise
Clustering Illusion & How We Can Guard Against It
Guess the Likelihood of an Event
Guess the Likelihood of an Event Poll
Guess the Likelihood of an Event (cont.)
Representative Bias
Representative Bias Case Study
How Can We Guard Against Representative Bias
Interactive Exercise 8
Investment Strategy Exercise
Investment Strategy Poll
Investment Strategy Exercise (cont.)
Status-Quo Bias
Status-Quo Bias Case Study
How Can We Guard Against Status-Quo Bias
Interactive Exercise 9
Shopping Exercise
Shopping Poll
Shopping Exercise (cont.)
Anchoring Bias
Anchoring Bias Case Study #1
Interactive Exercise 10
Anchoring Bias Case Study #2
How Can We Guard Against Anchoring Bias
Choose Your Treatment Exercise Question #1
Choose Your Treatment Question #1
Choose Your Treatment Exercise Question #2
Choose Your Treatment Question #2
Choose Your Treatment Exercise Analysis
Framing Bias
Framing Bias Case Study
Now You Have a Go...
Even Word Order Can Impact Framing
How Can We Guard Against Framing Bias
Interactive Exercise 11

Become a certified Capital Markets & Securities Analyst (CMSA)®

Behavioral Finance is part of the All Capital Markets & Securities Analyst (CMSA)® courses, which includes 29 courses.

Capital Markets & Securities Analyst (CMSA)® Certification
  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side

Path To Certification

Prep Courses

5 courses from beginner to intermediate level.

01Optional

Core Courses

8 courses from beginner to intermediate level.

02Required

Elective Courses

16 courses in advanced and intermediate levels.

03Required

Get Certified

Submit your CMSA® checklist and order your certificate.

CMSA Certificate 04Required

Join Our Community

Get access to the Global Corporate Finance Society.

05Optional

How the Certification Works

Capital Markets & Securities Analyst (CMSA)® courses are offered 100% online, allowing you the flexibility to start the Capital Markets & Securities Analyst (CMSA)® program anytime and learn when it’s most convenient for you.

The program is a part of the All Access Subscription, which includes all programs and courses.

CFI courses are designed by instructors with over 21 years of financial analyst training experience.

Students must complete all core and 7 elective courses (13 in total) and demonstrate mastery of the topics through successful completion of course materials, quizzes, and assessments.
Within 48 hours of program completion, your Blockchain Verified (CMSA)® Certification will be emailed to you.

What Our Students Say

Behavioral Finance
It was quite tough and change my modern finance thinking and based on real examples. It's really amazing and knowledgeable course.

Irfan Ahmed Shujrah

Excellent Course
I am enjoyed learning this course, beautiful!

khloud nasser Ismail Morsi


Excellent delivery of the course. The structure was perfectly arranged and the instructor was very elaborate, using practical illustrations and references.

Paul Elias Kandiwo

Thanks CFI
Good financial psychology that guides you in decision- making in the finance industry and societies as a whole. Has really shaped my cognitive behaviors when facing financial decisions. Thanks, CFI.

Teka Derick Tikum

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