VOOZH about

URL: https://www.coursera.org/learn/analyze-investor-behavior-with-behavioral-finance

⇱ Analyze Investor Behavior with Behavioral Finance | Coursera


Analyze Investor Behavior with Behavioral Finance

Ends soon! Keep adding new skills with 10,000+ programs for $239 (usually $399). Save now.

Analyze Investor Behavior with Behavioral Finance

Included with

β€’

Learn more

Gain insight into a topic and learn the fundamentals.
Beginner level

Recommended experience

2 weeks to complete
at 10 hours a week
Flexible schedule
Learn at your own pace

Gain insight into a topic and learn the fundamentals.
Beginner level

Recommended experience

2 weeks to complete
at 10 hours a week
Flexible schedule
Learn at your own pace

What you'll learn

  • Analyze investor behavior under risk and uncertainty using behavioral theories.

  • Identify cognitive and emotional biases affecting financial decisions.

  • Design behaviorally informed investment and portfolio strategies.

Details to know

Shareable certificate

Add to your LinkedIn profile

Recently updated!

February 2026

Assessments

28 assignments

Taught in English

There are 7 modules in this course

By the end of this course, learners will be able to analyze investor behavior, evaluate decision-making under risk and uncertainty, apply behavioral finance theories to real-world market scenarios, and design behaviorally informed investment and portfolio strategies.

This course provides a comprehensive exploration of behavioral finance by integrating psychological insights with traditional financial theory. Learners will examine why investors deviate from rational decision-making models and how cognitive and emotional biases influence individual choices, market outcomes, and asset prices. Core concepts such as utility theory, prospect theory, market efficiency, and behavioral asset pricing are explained alongside practical frameworks for identifying and mitigating behavioral biases. Through structured modules, real-world examples, and applied investment models, learners gain the skills needed to assess investor risk preferences, interpret market anomalies, and align portfolios with behavioral goals. The course uniquely bridges theory and practice by covering investor classification models, advisor-client dynamics, and behaviorally modified asset allocation strategies. Designed for finance professionals, analysts, and learners seeking practical decision-making skills, this course equips participants with actionable tools to improve investment judgment, portfolio discipline, and long-term financial outcomes in real market environments.

This module introduces the fundamentals of behavioral finance by contrasting it with traditional finance, exploring utility theory, probability-based decision-making, and the concept of rational economic behavior.

What's included

7 videos4 assignments

7 videosβ€’Total 55 minutes
  • Introduction Behavioral Financeβ€’10 minutes
  • Behavioral Finance Vs Traditional Financeβ€’9 minutes
  • Utility Theory and its Axiomsβ€’8 minutes
  • Utility Theory and its Axioms Continuesβ€’6 minutes
  • Bayes Theory and Exampleβ€’9 minutes
  • Bayes Theory and Utilityβ€’5 minutes
  • Rational Economic Manβ€’9 minutes
4 assignmentsβ€’Total 60 minutes
  • Introduction to Behavioral Financeβ€’10 minutes
  • Utility Theory and Rationalityβ€’10 minutes
  • Probability, Rational Man, and Riskβ€’10 minutes
  • Graded - Foundations of Behavioral Financeβ€’30 minutes

This module examines investor risk preferences, decision-making under uncertainty, and the foundational principles of prospect theory that explain deviations from rational behavior.

What's included

7 videos4 assignments

7 videosβ€’Total 56 minutes
  • Risk Aversion of Investorsβ€’9 minutes
  • Behavioral Finance Perpectives on Individualsβ€’7 minutes
  • Prospect and Decision Making Theoryβ€’11 minutes
  • Bounded Rationalityβ€’4 minutes
  • Prospect Theory - Editing Phaseβ€’9 minutes
  • Isolation Effectβ€’7 minutes
  • Example of Isolation Effectβ€’9 minutes
4 assignmentsβ€’Total 60 minutes
  • Risk Attitudes and Investor Behaviorβ€’10 minutes
  • Decision Making Under Uncertaintyβ€’10 minutes
  • Prospect Theory Foundationsβ€’10 minutes
  • Graded - Risk, Preferences, and Individual Behaviorβ€’30 minutes

This module explores market efficiency concepts and examines market anomalies that challenge the assumptions of fully efficient and rational markets.

What's included

4 videos3 assignments

4 videosβ€’Total 29 minutes
  • Efficient Markets and Forms of Market Efficiencyβ€’7 minutes
  • Efficient Market Hypothesisβ€’7 minutes
  • Market Anomaliesβ€’8 minutes
  • Market Anomalies Continuesβ€’7 minutes
3 assignmentsβ€’Total 50 minutes
  • Market Efficiency Conceptsβ€’10 minutes
  • Understanding Market Anomaliesβ€’10 minutes
  • Graded - Markets, Efficiency, and Anomaliesβ€’30 minutes

This module contrasts traditional portfolio theory with behavioral approaches, including consumption models, behavioral asset pricing, and adaptive market perspectives.

What's included

6 videos4 assignments

6 videosβ€’Total 50 minutes
  • Traditional Perspective of Portfolio Constructionβ€’9 minutes
  • Consumption and Savings Modelβ€’9 minutes
  • Behavioral Asset Pricing Modelβ€’5 minutes
  • Behavioral Portfolio Theoryβ€’12 minutes
  • Adaptive Market Hypothesisβ€’7 minutes
  • Types of Analysisβ€’8 minutes
4 assignmentsβ€’Total 60 minutes
  • Traditional Portfolio and Consumption Modelsβ€’10 minutes
  • Behavioral Asset and Portfolio Modelsβ€’10 minutes
  • Adaptive and Analytical Perspectivesβ€’10 minutes
  • Graded - Traditional vs Behavioral Portfolio Thinkingβ€’30 minutes

This module deepens understanding of utility theory, prospect theory, and the key differences between behavioral and traditional decision-making frameworks.

What's included

7 videos4 assignments

7 videosβ€’Total 55 minutes
  • Utility Theoryβ€’8 minutes
  • Risk Aversion Levelsβ€’8 minutes
  • Decision Making Theoryβ€’8 minutes
  • Prospect Theoryβ€’8 minutes
  • Prospect Theory Continueβ€’8 minutes
  • Behavioural and Traditional Approachβ€’8 minutes
  • Behavioural and Traditional Approach Continuesβ€’7 minutes
4 assignmentsβ€’Total 60 minutes
  • Utility, Risk, and Decisionsβ€’10 minutes
  • Prospect Theory in Practiceβ€’10 minutes
  • Behavioral vs Traditional Approachesβ€’10 minutes
  • Graded - Decision Theories and Risk Preferencesβ€’30 minutes

This module identifies cognitive and emotional biases that affect investor judgment and evaluates their impact on financial decision-making and portfolio outcomes.

What's included

9 videos4 assignments

9 videosβ€’Total 69 minutes
  • Cognitive vs Emotional Biasesβ€’11 minutes
  • Cognitive Errorsβ€’8 minutes
  • Cognitive Errors Persevearenceβ€’8 minutes
  • Cognitive Errors - Information Processingβ€’7 minutes
  • Cognitive Errors - Framingβ€’7 minutes
  • EB - Loss Aversionβ€’7 minutes
  • EB - Overconfidenceβ€’7 minutes
  • EB - Control Biasβ€’7 minutes
  • Endowment Biasβ€’6 minutes
4 assignmentsβ€’Total 60 minutes
  • Cognitive Biases and Errorsβ€’10 minutes
  • Information Processing and Framing Biasesβ€’10 minutes
  • Emotional Biases and Their Impactβ€’10 minutes
  • Graded - Cognitive and Emotional Biasesβ€’30 minutes

This module applies behavioral finance concepts to real-world investing, covering behavioral asset allocation, investor classification models, advisory practices, and market anomalies.

What's included

26 videos5 assignments

26 videosβ€’Total 250 minutes
  • Impact and Mitigation of Biases - For the Examβ€’8 minutes
  • Confirmation Bias Impactβ€’10 minutes
  • illusion of Control Bias Impactβ€’19 minutes
  • Framing Bias Impactβ€’12 minutes
  • Emotional Biasesβ€’9 minutes
  • Self Control Bias - Impactβ€’10 minutes
  • Status Quo Bias - Impactβ€’11 minutes
  • Goals Based Investingβ€’7 minutes
  • Behaviourally Modified Asset Allocationβ€’8 minutes
  • Behaviourally Modified Asset Allocation Continuesβ€’9 minutes
  • Barnewall Two Way Modelβ€’8 minutes
  • BBK Five Way Modelβ€’10 minutes
  • Pompian Modelβ€’11 minutes
  • Pompian Model Continuesβ€’11 minutes
  • Dealing with BITsβ€’7 minutes
  • Limitations of BITβ€’8 minutes
  • Advisor Client Relationshipβ€’8 minutes
  • Portfolio Constructionβ€’8 minutes
  • Portfolio Construction - DC Plansβ€’8 minutes
  • BP-Indivisiol Show Mental Accountingβ€’9 minutes
  • Analyst Forecastsβ€’8 minutes
  • Influence of Company Management on Analysisβ€’12 minutes
  • Analyst Bias in Conducting researchβ€’12 minutes
  • Investment Committeesβ€’8 minutes
  • Market Anomalies-Hardingβ€’9 minutes
  • Value and Growth Anomaliesβ€’11 minutes
5 assignmentsβ€’Total 70 minutes
  • Bias Mitigation and Investor Goalsβ€’10 minutes
  • Behavioral Asset Allocation and Modelsβ€’10 minutes
  • Behavioral Investor Classification and Advisory Modelsβ€’10 minutes
  • Advisory Practice, Analysis, and Market Insightsβ€’10 minutes
  • Graded - Behavioral Investing in Practiceβ€’30 minutes

Instructor

EDUCBA
1,663 Coursesβ€’338,914 learners

Explore more from Finance

Why people choose Coursera for their career

πŸ‘ Image

Felipe M.

Learner since 2018
"To be able to take courses at my own pace and rhythm has been an amazing experience. I can learn whenever it fits my schedule and mood."
πŸ‘ Image

Jennifer J.

Learner since 2020
"I directly applied the concepts and skills I learned from my courses to an exciting new project at work."
πŸ‘ Image

Larry W.

Learner since 2021
"When I need courses on topics that my university doesn't offer, Coursera is one of the best places to go."
πŸ‘ Image

Chaitanya A.

"Learning isn't just about being better at your job: it's so much more than that. Coursera allows me to learn without limits."

Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

Financial aid available,