Understand Behavioral Biases in Rice’s Online Course 3

Learn how to capitalize on behavioral biases and irrational behavior in investing

Without understanding the realities of human bias and irrational decision-making, investors can be their own worst enemies.

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DESCRIPTION

Biases and Portfolio Selection (Course 3)

In Course 3, we’ll start by learning about the various behavioral biases and mistakes that investors make–and understand their reasons for doing so. You will also learn to recognize how your own mistakes can affect investment decisions and financial markets. You will also explore how different individual or organizational preferences and investment horizons impact the optimal asset allocation choice.

Who should attend:

Student and early career professionals studying finance who would like to deepen their understanding of the intersection of psychology and portfolio management, behavioral biases, and the limits of traditional financial theories.
Professionals managing portfolios or working in asset management who want to understand how behavioral biases affect decision-making in portfolio selection and risk management.
Individual investors looking to improve their portfolio strategies by recognizing and overcoming financial and behavioral biases.

You will be able to:

Recognize behavioral biases in investing, such as anchoring, overconfidence, and herd behavior, and evaluate their impact on investment biases and portfolio selection.
Design and implement strategies to counteract behavioral biases in investment decision-making, ensuring more rational and data-driven approaches to portfolio management.
Demonstrate behavioral finance principles, critically evaluate the implications of the Efficient Market Hypothesis and its limitations and address anomalies and puzzles in financial markets to enhance portfolio decision-making.

LECTURE SAMPLES

MEET YOUR RICE PROFESSOR

Arzu Ozoguz

Dr. Arzu Ozoguz is a visiting assistant professor of finance at the Jesse H. Jones Graduate School of Business at Rice University. She conducts research in the areas of investments, corporate finance, and information economics. Her work focuses on how the information environment in financial markets affects the dynamics of asset prices and the cross-section of stock returns. More recently, she has been studying the interaction between the information in stock prices and firms’ real investment decisions.