Information Package / Course Catalogue
Behavioral Finance
Course Code: UTİ307
Course Type: Area Elective
Couse Group: First Cycle (Bachelor's Degree)
Education Language: Turkish
Work Placement: N/A
Theory: 3
Prt.: 0
Credit: 3
Lab: 0
ECTS: 6
Objectives of the Course

The aim of this course is to enable students to learn the psychological basics of financial decision making and discuss the effects of these fundamentals on financial decision makers and asset pricing in detail. Topics to be discussed include expected benefit theory, reduced benefit theory, rational learning, balloons, noise trade, over-trust hypothesis and over-optimism, under-under-response, over-reaction and behavioral corporate finance.

Course Content

1. Students will use the basic concepts of behavioral finance in financial decision making. 2. Students will explain the effects of personal behavior on investment decisions. 3. Students will evaluate the effect of investors' psychology on risk tolerances. 4. Students will evaluate balloons and behavioral criteria. 5. Students will examine the effect of investors' philological profiles on individual investment behavior. 6. Students will explain the main concepts and topics in behavioral finance.

Name of Lecturer(s)
Assoc. Prof. Zeliha CAN ERGÜN
Learning Outcomes
1.To be able to explain the operation of the theory of utility to evaluate risky results
2.Using discount rates depending on time or changing in asset pricing models
3.Investors understand why they may not rationally learn in accordance with Bayes theory and how this learning process affects asset pricing models
4.To be able to comment on extreme optimism, overreaction and herd behavior considering the financial balloons in history
5.To explain the role of noise traders in asset pricing
Recommended or Required Reading
1.Murat Kıyılar ve Murat Akkaya (2020). Davranışsal Finans. Literatür Yayınları.
Weekly Detailed Course Contents
Week 1 - Theoretical
Introduction
Week 2 - Theoretical
Finance, Risk and Uncertainty, Rationality
Week 3 - Theoretical
Financial Decision Making, Investment Decisions and Finance Theories
Week 4 - Theoretical
Financial Decision Making, Investment Decisions and Finance Theories
Week 5 - Theoretical
Behavioral Finance against Classical Finance
Week 6 - Theoretical
The Essentials of Behavioral Finance
Week 7 - Theoretical
Expectation Theory
Week 8 - Theoretical
Expectation Theory (Midterm)
Week 9 - Theoretical
Anomalies, Noise and Speculation
Week 10 - Theoretical
Anomalies, Noise and Speculation
Week 11 - Theoretical
Mental Accounting, Herd Behavior and Price Bubbles
Week 12 - Theoretical
Psychological and Cognitive Biases
Week 13 - Theoretical
Psychological and Cognitive Biases
Week 14 - Theoretical
Investor Psychology and Sentiment
Assessment Methods and Criteria
Type of AssessmentCountPercent
Midterm Examination1%40
Final Examination1%60
Workload Calculation
ActivitiesCountPreparationTimeTotal Work Load (hours)
Lecture - Theory130339
Individual Work130452
Midterm Examination128129
Final Examination129130
TOTAL WORKLOAD (hours)150
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
PÇ-11
PÇ-12
PÇ-13
PÇ-14
PÇ-15
OÇ-1
5
4
3
5
3
5
4
2
5
5
3
5
4
3
5
OÇ-2
4
5
4
5
3
3
4
5
5
5
3
5
4
5
4
OÇ-3
3
4
3
5
3
2
5
5
4
3
5
5
5
5
5
OÇ-4
4
3
4
3
2
4
2
5
4
5
4
3
3
4
5
OÇ-5
4
3
4
5
3
4
5
4
3
5
5
5
3
2
5
Adnan Menderes University - Information Package / Course Catalogue
2026