Information Package / Course Catalogue
Behavioral Finance
Course Code: MKS275
Course Type: Area Elective
Couse Group: Short Cycle (Associate's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 2
Prt.: 0
Credit: 2
Lab: 0
ECTS: 4
Objectives of the Course

Handling the elements of financial markets such as financial decision-making processes, behavioral errors, price formation with a behavioral finance approach and presenting an insight within this framework.

Course Content

Efficient Market concept and basic assumptions; common mistakes such as the assumption of investors' rationality and herd psychology, overreaction; pricing financial assets with behavioral finance; the role of investor sentiment; Fundamentals of Prospect Theory; risk and arbitrage; financial bubbles and crashes, investor behavior.

Name of Lecturer(s)
Ins. Zehra GÜLCAN MADRAN
Learning Outcomes
1.Acquiring the necessary knowledge on traditional finance theories, financial asset pricing models and assumptions, and efficient market concept.
2.Covering the fundamentals of financial and economic decision making and the role of behavioral errors
3.Understanding the behavioral approach in financial markets
4.Examining various common behavioral mistakes in financial markets
5.Review of market anomalies and their consequences
6.Identifying and working on financial problems as a result of examining financial markets with a behavioral finance perspective
Recommended or Required Reading
1.Behavioral Finance and Market Anomalies Theoretical Discussion – Literature – Practice, Cihan YILMAZ,Seçkin Yayıncılık
2.Behavioral Economics (Neurofinance): Concept – Theory – Practice, Utku Altınöaz-Hasip Altınöz,Seçkin Yayıncılık
Weekly Detailed Course Contents
Week 1 - Theoretical
Investment environment and individuals, Rational investor perspective and traditional finance theories, basic concepts and theories of behavioral finance, efficient market hypothesis
Week 2 - Theoretical
Financial decision making, investor psychology, common mistakes and Prospect Theory
Week 3 - Theoretical
Heuristics
Week 4 - Theoretical
Review of common behavioral mistakes in financial markets and Portfolio Allocation Decisions
Week 5 - Theoretical
Behavioral errors (mental biases, BIASLER) and case study in financial markets
Week 6 - Theoretical
Behavioral errors (overconfidence, optimism) and case study in financial markets
Week 7 - Theoretical
Behavioral errors in financial markets (anchoring, gambler effect) and case study
Week 8 - Theoretical
Midterm
Week 9 - Theoretical
Behavioral errors (loss aversion, uncertainty avoidance) and case study in financial markets
Week 10 - Preparation Work
Behavioral errors in financial markets (familiarity, priority to invest in domestic assets, conservatism, herd psychology, etc.) and case study
Week 11 - Theoretical
Case studies based on market anomalies, market bubble news, panic and crashes, and financial scandals
Week 12 - Theoretical
Financial asset pricing in market inefficiency, Behavioral corporate finance and managerial decision making
Week 13 - Theoretical
Arbitrage: definition, arbitrage opportunities, Limits of the Law of One Price and Financial literacy
Week 14 - Theoretical
Financial literacy, How should we manage our psychology as investors in financial markets? Why Fundamental and Technical Analysis alone cannot be enough?
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory141242
Midterm Examination1101424
Final Examination1201434
TOTAL WORKLOAD (hours)100
Contribution of Learning Outcomes to Programme Outcomes
PÇ-1
PÇ-2
PÇ-3
PÇ-4
PÇ-5
PÇ-6
PÇ-7
PÇ-8
PÇ-9
PÇ-10
OÇ-1
3
3
3
4
5
3
4
5
OÇ-2
5
4
2
4
5
4
5
5
OÇ-3
2
3
5
3
5
4
5
4
OÇ-4
3
4
5
5
4
5
4
5
OÇ-5
4
2
5
3
4
5
4
5
OÇ-6
4
3
5
4
4
3
4
5
Adnan Menderes University - Information Package / Course Catalogue
2026