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Course Hack
Behavioral FinanceBy Emma Rasiel, Duke University

In a Nutshell

This course offered by Duke University through Coursera discusses the importance of considering common behavioral investing mistakes before making major financial decisions.

Favorite Quote

People sometimes call economics the dismal science. Our idea of being funny in economics is to respond to that by saying, 'if you think our science is dismal, you should hear our poetry.'

Emma Rasiel

Introduction

Our life is a series of decisions, but some decisions demand more thought than others.

Unlike deciding what to wear or what to eat, financial decisions require careful thought, research, and analysis.

Before teaching Behavioral Finance at Duke University, Emma Raisel worked as a derivatives trader for an investment bank, where she made many mistakes and learned a lot from them.

In this course, Rasiel shows why we are more likely to think about the wrong things, analyze the wrong graphs, and make bad decisions with our money.

Behavioral Finance explores how bad financial decisions are rooted in psychological biases like risk avoidance, omission bias, reference points, and loss aversion.

Here are the 3 key insights from this Hack

  1. 1.
    Classical economists rely on expected utility theory to gauge irrational financial decisions
  2. 2.
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  3. 3.
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