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.

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