The Psychology of Finance
Psychology influences investors’ and financial analysts’ behavior and impacts market outcomes. Understand the thinking behind money management and financial trading.
- Start Date: February 20, 2023
- Online learning with live, interactive sessions
- Tuition: USD $2,500
- English, Spanish, and Portuguese
- 4.5 Continuing Education Units (CEUs)
Sign up now with early-enrollment pricing—10% tuition reduction available only until October 25, 2022
About the Course
Over an eight-week period, our Psychology of Finance course will reveal the biases and volatility inherent to the human decision-making process in finance.
You will learn to:
- Describe concepts such as utility, probability weighting, the certainty effect, survivorship bias, risk, gains and losses.
- Explain the causation/correlation error, the mental error in probability weighting, the consequences of the anchoring bias, overtrading 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.
You will be able to:
- Understand the psychology behind financial decisions made by business leaders and investors.
- Neutralize relevant biases.
- Make and encourage better financial decisions.
- Explain the consumer choice theory.
- Differentiate between mental models related to behavioral finance.
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Career Outlook
Behavioral finance proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners. All types of market anomalies, especially those related to the stock market, can be explained through these psychological behaviors. In a time of increased uncertainty and market volatility, behavioral finance is rapidly growing in practice. Advisors seek to incorporate this analysis into their wealth management processes to improve the client experience, deepen relationships, and deliver better results. In a recent survey of financial advisors, 81% of them said they were using behavioral finance techniques to build their clients’ portfolios and communicate with them.
$
86
k
The average annual base pay for an investment advisor in the United States
#
4
The position of social/behavioral scientist in the ranking of emerging finance roles
81
%
The percentage of financial advisors that are using behavioral finance techniques
Potential Job Titles in Behavioral Finance
- Behavioral Economics Researcher
- Behavioral Scientist
- Consultant
- Financial Analyst
- Financial Associate
- Investment Manager
- Personal Financial Advisor
Meet Your Instructors
George Dan, MBACo-founder and COO of User Nudge, Inc. The Psychology of Finance, The University of Chicago Read More
Read more
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.
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The University of Chicago Approach to Online Learning
Our online learning programs are crafted with your specific needs in mind. Programs combine e-learning with live, interactive sessions to strengthen your skill set while maximizing your time. We couple academic theory and business knowledge with practical, real-world application. Through online learning sessions, you will have an opportunity to grow your professional network and interact with University of Chicago instructors and your classmates.
What Our Participants Say
¨Excellent learning experience. I thank the University of Chicago. In my professional and personal life, this knowledge will be very useful to me as it will help me to know myself better, know the rest of the people around me, and enrich my thought processes and decision-making in all my activities, mainly in the field of finance, in order to generate more value.¨
¨The course was enlightening, exceeded my expectations, and opened up a new area of knowledge that I know will make a big difference in my professional development. I especially want to congratulate and thank Andrés, our teaching assistant. His level of knowledge and, above all, his degree of commitment to the course is remarkable. His constant collaboration and willingness were a key part of the success of the program. Finally, I would like to thank the entire team. I thoroughly enjoyed the experience.¨
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