- PROGRAMS
- Behavioral Finance & Investment Decisions
Behavioral Finance & Investment Decisions
Compare
Apply
Short Overview
The European Securities and Markets Authority Consultation Paper published a Consultation Paper (ESMA35-43-748, July 2017) where it is suggested that according to research in psychology people rely on a limited number of heuristic principles which reduce complex tasks of assessing probabilities and predicting values to simpler judgmental operations; these heuristics may lead to severe and systematic errors. According to the paper "...investors, or at least a significant number of them, are subject to heuristics and behavioural biases" and "...their financial decisions ... might lead to sub-optimal outcomes for them". Based on this paper, examples of investor biases may include Overconfidence and over-optimism, Representativeness, Conservatism, Availability bias, Frame dependence and anchoring, Mental accounting, Regret aversion, Loss aversion.
This program aims to present and analyse these concepts and how they affect investor decisions.
More specifically, traditional economics and finance is developed on the assumption of a rational utility maximizing economic agent. Recent empirical evidence, however, suggests that real people behave differently than assumed. This module reviews the literature on cognitive psychology as regards to human and investor behaviour and contrasts this with the behavior that is expected from traditional models. We discuss also discusses empirical findings on various related issues such as herding behaviour, measures of herding, investor overreaction and under-reaction, measurement of investor sentiment, mental accounting, overconfidence, the house-money effect, the dividend puzzle, the equity premium puzzle, the closed-end fund puzzle, among others.Learning Goals
Upon completion of the program, the trainee will be in the position to:
- be able to describe, determine, and analyse the most important issues in Behavioral Finance
- understand and differentiate between different theories
- apply the issues discussed in the lectures and evaluate specific problems, such as the reasons that lead investors to herd behavior
Program Value
Τraditional economics and finance is developed on the assumption of a rational utility maximizing economic agent. Recent empirical evidence, however, suggests that real people behave differently than assumed. This module reviews the literature on cognitive psychology as regards to human and investor behaviour and contrasts this with the behavior that is expected from traditional models. We discuss also discusses empirical findings on various related issues such as herding behaviour, measures of herding, investor overreaction and under-reaction, measurement of investor sentiment, mental accounting, overconfidence, the house-money effect, the dividend puzzle, the equity premium puzzle, the closed-end fund puzzle, among others.
Trainees will learn how (a) investment decisions are influenced by investment psychology and behavioral biases, (b) how investment behavior affects prices and trends in the market, and (c) how we can measure investor sentiment and take it under consideration when we make investment decisions.
Teaching Material
Video presentations, self tests, online presentation slides, online notes or parts of books, suggested bibliography
Evaluation Method And Final Grade Computation
Exam via platform. The final grade is calculated from a multiple-choice exam with 20 questions and a score scale of 0-100.
Learning Method Description
The program uses the eLearning educational method: learning takes place purely asynchronously (that is, on days and hours that serve the trainee, without mandatory attendance at a specific time or day), exclusively remotely (using a special educational platform via the internet from the trainee's area) and using digital educational tools such as video lectures, interactive self-assessment exercises, and other elearning tools that ensure effective and flexible individual self-learning. The program's training material becomes available at specific time periods, based on the training path followed, and then remains available on the training platform without restrictions throughout the duration of the program.
Teaching Language
Greek
Application deadline: 10/10/2025
Program start: 15/10/2025
Program completion: 22/11/2025
Scientific area
Way to follow
ECTS units: 1
Hours of asynchronous training: 10
Includes training hours (indicative) using an asynchronous distance learning (eLearning) platform.
Includes training hours (indicative) using an asynchronous distance learning (eLearning) platform.
Additional hours of employment: 20
Additional hours of work are included (indicative) and may include individual study, writing assignments, participation in field visits, participation in exams, etc.
Additional hours of work are included (indicative) and may include individual study, writing assignments, participation in field visits, participation in exams, etc.
Total hours: 30
The total hours include hours of synchronous and asynchronous training, as well as additional hours of employment.
The total hours include hours of synchronous and asynchronous training, as well as additional hours of employment.
Weeks of training: 5
Weeks in which activities of any kind are planned are included.
Weeks in which activities of any kind are planned are included.
Vocational Education and Training Certificate
Trainees who successfully complete the program are granted a Vocational Education and Training Certificate of the Center for Education and Lifelong Learning of the Athens University of Economics and Business, which is accompanied by a Supplement to the Certificate, detailing the subject of the program, the thematic units attended by the trainee , as well as the training methodology followed.
Target Audience
The program is targeted to financial market participants such as investors, analysts, financial institution executives, investment advisors and portfolio managers, among others, who are interested in recent findings, according to the relevant scientific literature, on (a) the way people make investment decisions and how these decisions are influenced by investment psychology and behavioral biases, (b) how investment behavior affects prices and trends in the market, and (c) how we can measure investor sentiment and take it under consideration when we make investment decisions.
Scientific Coordinator
Program Tutors
Mode And Frequency Of Communication
Through electronic discussion areas of the distance learning platform and via email.
Cost
ELEARNING: 400€
Installements
The total amount of tuition is €400 and is paid in two installments. The first installment, of €200, is paid as an advance before the start of the courses, to secure the place, and the second, of €200, is paid before the program is half completed. In the event of a discount, the above amounts are reduced proportionally. Especially in the case of a 20% discount, the above amounts are set at €320 (total amount), €200 (first installment - advance payment) and €120 (second installment).
Trainees are informed of the installment amounts and related deadlines via email upon their acceptance into the program.
CONTACT
45, Kefallinias Str., 11257, Athens
-
dummy secretariat@diaviou.aueb.gr
-
dummy+30 210 8203 913
For the in Class programs:
-
dummydiazosis@diaviou.aueb.gr
-
dummy+30 210 8203 916, 912, 914
For the eLearning Programs:
-
dummyelearning@diaviou.aueb.gr
-
dummy+30 210 8203 753
WEBSITE CONTENTS
OTHER INFORMATION
