|
Program Outcomes and Competences |
Level |
Assessed by |
1) |
Thorough knowledge of the major concepts, theoretical perspectives, empirical findings, and historical trends in psychology. |
N |
|
2) |
Understanding of and ability to apply essential research methods in psychology, including research design, data analysis, and data interpretation. |
N |
|
3) |
Competence to use critical and creative thinking, skeptical inquiry and a scientific approach to solving problems related to behavior and mental processes. |
H |
Exam,HW,Participation
|
4) |
Understanding and ability to apply psychological principles, skills and values in personal, social, and organizational contexts. |
N |
|
5) |
Ability to weigh evidence, to tolerate ambiguity, and to reflect other values that underpin psychology as a discipline. |
N |
|
6) |
Internalization and dissemination of professional ethical standards. |
N |
|
7) |
Demonstration of competence in information technologies, and the ability to use computer and other technologies for purposes related to the pursuit of knowledge in psychology and the broader social sciences. |
N |
|
8) |
Skills to communicate the knowledge of psychological science effectively, in a variety of formats, in both Turkish and in English (in English, at least CEFR B2 level). |
N |
|
9) |
Recognition, understanding, and respect for the complexity of sociocultural and international diversity. |
S |
Participation
|
10) |
Recognition for the need for, and the skills to pursue, lifelong learning, inquiry, and self-improvement. |
S |
HW,Participation
|
11) |
Ability to formulate critical hypotheses based on psychological theory and literature, and design studies to test those hypotheses. |
N |
|
12) |
Ability to acquire knowledge independently, and to plan one’s own learning. |
S |
Exam,HW
|
13) |
Demonstration of advanced competence in the clarity and composition of written work and presentations. |
H |
Exam,HW
|
Week |
Subject |
1) |
Introduction to the course and a general overview
|
2) |
Traditional Finance and Traditional Economics
Behavioral Economics
|
3) |
Traditional Finance - Efficient Markets and Modern Portfolio Theory
Eugene Fama (Nobel Prize 2013)
“… Fama emphasized a fundamental problem that had largely been ignored by the earlier literature: in order to test whether prices correctly incorporate all relevant available information, so that deviations from expected returns are unpredictable, the researcher needs to know what these expected returns are in the first place. (…) Fama also discussed what “available” information might mean. Following a suggestion by Harry Roberts, Fama launched the trichotomy of (i) weak-form informational efficiency, where it is impossible to systematically beat the market using historical asset prices; (ii) semi-strong–form informational efficiency, where it is impossible to systematically beat the market using publicly available information; and (iii) strong-form informational efficiency, where it is impossible to systematically beat the market using any information, public or private.”
“… convincingly established that the CAPM beta has practically no additional explanatory power once book-to-market and size have been accounted for.”
Papers:
Efficient capital markets: a review of theory and empirical work
Eugene F. Fama
Volume 25, Issue 2
May 1970
Efficient capital markets: II
Eugene F. Fama
Volume 46, Issue 5
December 1991
The Cross Section of Expected Stock Returns
Eugene F. Fama and Kenneth R. French
Volume 47, Issue 2
June 1992
Harry Markowitz (Nobel Prize 1990)
“…A first pioneering contribution in the field was made by Harry Markowitz, who developed a theory of portfolio decisions of households and firms under conditions of uncertainty. The theory shows how the multidimensional problem of investing under conditions of uncertainty in a large number of assets, each with different characteristics, may be reduced to the issue of a trade-off between only two dimensions, namely the expected return and the variance of the return of the portfolio.”
Papers
Portfolio Selection
Harry Markowitz
Volume 7, Issue 1
March 1952 |
4) |
Scholars who shaped the landscape of Behavioral Finance and Behavioral Economics
1st round of student presentations
|
5) |
The Emergence of Behavioral Finance and its Effect on Financial Markets Research
Robert Shiller (Nobel Prize 2013)
“… The findings of excess volatility and predictability are challenging for the notion that prices incorporate all available information or for standard asset-pricing theory – or for both. Based on his early findings, Shiller argued that the excess volatility he documented seemed difficult to reconcile with the basic theory and instead could be indicative of “fads” and overreaction to changes in fundamentals.”
“… Campbell and Shiller explore the determinants of the dividend-price ratio d/p. (…) The methodology developed by Campbell and Shiller allows an analyst to gauge to what extent variations in d/P can be explained by variations in expected dividends and discount rates, respectively. (…) The Campbell-Shiller decomposition has become very influential both by providing an empirical challenge for understanding what drives asset prices and by providing a methodology for addressing this challenge.”
Papers
The Use of Volatility Measures in Assessing Market Efficiency
Robert J. Shiller
Volume 36, Issue 2
May 1981
Stock Prices, Earnings, and Expected Dividends
John Y. Campbell and Robert J. Shiller
Volume 43, Issue 3
July 1988 |
6) |
The evolution of BF and Exam 1
|
7) |
How should we / how do we make (financial) decisions?
|
8) |
Decision making in finance – evidence from research
2nd round of student presentations
|
9) |
Neuroscience and neurofinance
|
10) |
How do we “nudge” sustainable financial decisions?
-Nudge Theory
|
11) |
Richard Thaler and his research
|
12) |
Behavioral Pricing and Consumer Behavioral Finance
Evidence from research
|
13) |
Can BF explain the behavior of cryptomarkets?
|
14) |
Recap
Exam 2
|
15) |
Final Examination Period |
16) |
Final Examination Period |