Behavioral Finance - The University of Chicago

Behavioral Finance Understanding Psychological Influences of Financial Decision - Making

Global Markets Global stock markets are constantly fluctuating; one day stocks are up, and the next day they are dramatically lower. But what exactly impacts supply and demand in the stock market?

Behavioral Finance at the University of Chicago Behavioral finance is the study of psychological influences on behavior of investors and financial analysts and how it impacts market outcomes. The University of Chicago’s eight-week course on behavioral finance will help you to understand the thinking behind money management and financial trading.

Course Details TUITION: USD $2,200 COURSE FORMAT: Remote learning with live, interactive sessions DURATION: Eight weeks LANGUAGE: English INSTRUCTOR: George Dan, MBA, Co-Founder and COO, User Nudge, Inc. Behavioral Finance and Economics Instructor at the University of Chicago

About the Course The course starts by introducing the fundamental concepts of behavioral finance: the utility of money, prospect theory, and consumer choice theory. It then advances to the biases influencing human decision-making in finance and closes out with a detailed conversation about money management and financial trading.

Over an eight-week period, our Behavioral Finance course will show you how financial decision-making is affected not only by rational thought, but emotions, biases, and mental shortcuts.

Yo u W i l l Le a r n To: • Describe concepts such as utility, probability weighting, the certainty effect, and survivorship bias, as well as risk, gains, and losses.

• Explain the causation/correlation error, the mental error in probability weighting, the consequences of the anchoring bias, over-trading due to overconfidence, the equity premium puzzle, and active vs. passive mutual funds.

• Evaluate subjective vs. absolute probabilities, overconfidence as the “mother of all biases”, and the framing and reversal of preferences.

Who Should Attend?

If you consider yourself to be a businessperson, professional, or emerging leader that is working in a management position for a financial institution or general business management, this course will teach you the fundamental concepts of behavioral finance.

Connect with Expert Instructors Courageous thinkers and passionate teachers, our instructors are an active community of scholars. Propelled by rigorous debate and cross-disciplinary collaboration, they produce ideas that matter and enrich human life.

Meet the Instructor George Dan co-founded the startup User Nudge, Inc., after a lifelong journey to understand the way people make decisions. Using behavioral science, the company focuses on how those using online interfaces make decisions.

Prior to founding his startup, George worked as the Head of Operations Analytics with a software-as-a-service company, where he designed processes, implemented new systems, and developed innovative ways of launching digital products. George received his Master of Business Administration degree from the University of Chicago Booth School of Business in 2008.

George is on the board of Family Service of Lake County, a non-profit organization that aims to strengthen families through counselling, education, and related mental health support.

Chief Behavioral Officer and Co-Founder at User Nudge, Inc. a startup that applies behavioral science and data science to solve business problems in interface design and product operations.

George Dan, MBA CO-FOUNDER AND COO, USER NUDGE, INC. BEHAVIORAL FINANCE AND ECONOMICS INSTRUCTOR AT THE UNIVERSITY OF CHICAGO

Why the University of Chicago?

Becoming a member of the University of Chicago community means gaining access to world-class instructors and a cohort of curious, diverse individuals.

Through a firm grounding in core principles and a rigorous approach to problem-solving, our teaching method—the Chicago Approach— will give you the tools you need to make sense of complex data and turn ideas into impact. Course participants will receive a certificate of completion and join a global network of thought leaders.

Approach to Remote Learning Our remote learning courses are crafted to support your specific professional development goal. Courses combine e-learning with live, interactive sessions to strengthen your skillset while maximizing your time. We couple academic theory and business knowledge with practical, real-world application.

Through remote learning sessions, you will have an opportunity to interact with University of Chicago instructors and your peers.

Course Outline MODULE 1: IRR ATIONALIT Y IN BEHAVIOR AL FINANCE • Introduction • Human Decision-Making • Irrationality in Decision-Making and Markets • The Utility of Money • Consumer Choice Theory

MODULE 2: UTILIT Y • Introduction • The Dual Process Theory + Case Study • The Prospect Theory • The Regret Theory and Omission Bias

To schedule an appointment with admissions, contact: admissions@online.professional.uchicago.edu

MODULE 3: CORREL ATION VS . CAUSATION • Introduction • Probability • Base Rates and False Positives • Correlation and Causation in the Stock Market

MODULE 4: PROBABILITIES WEIGHTING • Introduction • Probability Weighting, Relative vs. Absolute Probabilities • Investor Behavior

MODULE 5: HEURISTIC S AND BIASES • Introduction • Heuristics • Overconfidence • Availability • Representativeness, Confirmation Bias • Confirmation Bias

For more information visit: online.professional.uchicago.edu

MODULE 6: FR AMING AND MENTAL ACCOUNTING • Introduction • Framing bias • Anchoring and adjustment • The endowment effect • Mental accounting • Status quo bias

MODULE 7: FINANCIAL TR ADING • Introduction • Overconfidence and Financial Trading • The Equity Premium Puzzle • Herding

MODULE 8: MONE Y MANAGEMENT • Introduction • Choice Overload • Active vs. Passive Mutual Funds • The Survivorship Bias • Saving

BEHAVIORAL FINANCE

admissions@online.professional.uchicago.edu online.professional.uchicago.edu