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Behavioral Finance Course Overview

Behavioral finance is the study of the influence of psychology on the behavior of financial practitioners. In the course, you will learn about the wide range of decision-making biases and information processing errors that influence our financial decision-making. We’ll start the course with what behavioral finance is and its impacts on financial markets. We will then explore the most common self-deception biases, cognitive biases, and emotional biases. We will discuss their causes and potential measures you can take to manage them. We’ll finish the course by discussing loss aversion and herding bias.    

Behavioral Finance Learning Objectives

Upon completing this course, you will be able to:
  • Understand what behavioral finance is, how it differs from modern finance, and how it impacts financial markets
  • Describe the most common self-deception biases, their causes, and potential measures you can take to prevent them
  • Understand cognitive biases and explore their root causes with real-life examples
  • List the most common emotional biases and discuss their causes with examples
  • Understand loss aversion and other biases that contribute to its effect
  • Study the herding bias and other social factors that distort decision-making

Who Should Take This Course?

This Behavioral Finance course is perfect for anyone who wants to be well-rounded in their analysis. This course is designed to equip anyone who desires to begin a career in fixed income, equity, sales and trading, or other areas of finance.

Behavioral Finance

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Level 1

Approx 4h to complete

100% online and self-paced

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What you'll learn

Cognitive Biases
Overview of Cognitive Biases
2008 Global Financial Crisis Exercise
2008 Global Financial Crisis Poll
2008 Global Financial Crisis Exercise (cont.)
Hindsight Bias
Hindsight Bias Case Study
Interactive Exercise 6
Self-Attribution Bias
Self-Attribution Bias Case Study
How Can We Guard Against Self-Attribution & Hindsight Bias
International News Exercise
International News Poll
International News Exercise (cont.)
Confirmation Bias
Confirmation Bias Case Study
Confirmation Bias Exercise
Confirmation Bias Poll
Confirmation Bias Exercise (cont.)
How Can We Guard Against Confirmation Bias
Interactive Exercise 7
Finding Patterns Exercise
Clustering Illusion & How We Can Guard Against It
Guess the Likelihood of an Event
Guess the Likelihood of an Event Poll
Guess the Likelihood of an Event (cont.)
Representative Bias
Representative Bias Case Study
How Can We Guard Against Representative Bias
Interactive Exercise 8
Investment Strategy Exercise
Investment Strategy Poll
Investment Strategy Exercise (cont.)
Status-Quo Bias
Status-Quo Bias Case Study
How Can We Guard Against Status-Quo Bias
Interactive Exercise 9
Shopping Exercise
Shopping Poll
Shopping Exercise (cont.)
Anchoring Bias
Anchoring Bias Case Study #1
Interactive Exercise 10
Anchoring Bias Case Study #2
How Can We Guard Against Anchoring Bias
Choose Your Treatment Exercise Question #1
Choose Your Treatment Question #1
Choose Your Treatment Exercise Question #2
Choose Your Treatment Question #2
Choose Your Treatment Exercise Analysis
Framing Bias
Framing Bias Case Study
Now You Have a Go...
Even Word Order Can Impact Framing
How Can We Guard Against Framing Bias
Interactive Exercise 11
Midway Check-In
Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Capital Markets & Securities Analyst (CMSA®) Certification
Behavioral Finance is part of the Capital Markets & Securities Analyst (CMSA®) certification, which includes 42 courses.
  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side
Financial Planning & Wealth Management (FPWM™) Certification
Behavioral Finance is part of the Financial Planning & Wealth Management (FPWM™) certification, which includes 29 courses.
  • Skills Learned Financial Learning, Business Development, Investment Management, Practice Management, Relationship Management
  • Career Prep Financial Planner, Investment Advisor, Portfolio Manager

Learner Reviews

My very first experience into Behavioural Finance- Loved it!
This is the first time I've learned about behavioral finance. The course made it very interesting! It was very well taught and explained. Loved it!

Mustafa Mustansir

Thanks CFI
Good financial psychology that guides you in decision- making in the finance industry and societies as a whole. Has really shaped my cognitive behaviors when facing financial decisions. Thanks, CFI.

Teka Derick Tikum

Excellent delivery of the course. The structure was perfectly arranged and the instructor was very elaborate, using practical illustrations and references.

Paul Elias Kandiwo

Behavioral Finance
Top quality content and excellent delivery.

venugopal rajamanuri

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Frequently asked questions

What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
How long do I have to complete the courses?
You will have yearly access to the courses as long as you maintain an active subscription. All the courses are self-paced as well so you can take your time in learning without worrying about any deadlines. Click here to compare our available enrollment options.
Are CFI courses officially accredited?
Yes, CFI is accredited by the Better Business Bureau® (BBB) to maintain training standards, the CPA Institutions in Canada, and the National Association of State Boards of Accountancy (NASBA) in the USA. Most of our courses qualify for verified CPE credits for CPA charter holders. Please refer to this page to view all available CPE credits.
Are there any additional fees or costs?
None! The bundle price includes everything and there are no additional fees or charges to earn your digital certification. You can see our enrollment fees listed here.
What currency are your courses priced in?
All our online courses are priced in USD. As this is a recurring payment, we accept all major credit and debit cards including Visa, MasterCard, and American Express.
How do I earn my certificates?
Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
Can I email the instructor if I have questions?
While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
Will these courses help me advance my career?
Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
More Questions?
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