The Psychology of Finance

Psychology influences investors’ and financial analysts’ behavior and impacts market outcomes. Understand the thinking behind money management and financial trading.

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Course modules will pause after Friday, December 23, 2022, and resume on Monday, January 2, 2023. Enjoy the holiday break!

About the Course

Over an eight-week period, the course will reveal the biases and volatility inherent to the human decision-making process in finance.

You will learn to:

  • Describe concepts such as utility, probability weighting, the certainty effect, survivorship bias, risk, gains, and losses
  • Explain the causation/correlation error, the mental error in probability weighting, the consequences of the anchoring bias, overtrading due to overconfidence, the equity premium puzzle, and active vs passive mutual funds
  • Evaluate subjective vs absolute probabilities, overconfidence as the “mother of all biases,” and the framing and reversal of preferences

You will be able to:

  • Understand the psychology behind financial decisions made by business leaders and investors
  • Neutralize relevant biases
  • Make and encourage better financial decisions
  • Explain the consumer choice theory
  • Differentiate between mental models related to behavioral finance
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Career Outlook

Behavioral finance proposes that psychological influences and biases affect the financial behaviors of investors and financial practitioners. All types of market anomalies, especially those related to the stock market, can be explained through these psychological behaviors. In a time of increased uncertainty and market volatility, behavioral finance is rapidly growing in practice. Advisors seek to incorporate this analysis into their wealth management processes to improve the client experience, deepen relationships, and deliver better results. In a recent survey of financial advisors, 81% of them said they were using behavioral finance techniques to build their clients’ portfolios and communicate with them. 

  • Behavioral Economics Researcher
  • Behavioral Scientist
  • Consultant
  • Financial Analyst
  • Financial Associate
  • Investment Manager
  • Personal Financial Advisor

Meet Your Instructor

George Dan, MBA
George Dan, MBACo-founder and COO of User Nudge, Inc. The Psychology of Finance
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Chief Behavioral Officer and Co-Founder at User Nudge, Inc., a startup that applies behavioral science and data science to solve business problems in interface design and product operations.
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Do you have questions?

The University of Chicago Approach to Online Learning

Our online learning programs are crafted with your specific needs in mind. Programs combine e-learning with live, interactive sessions to strengthen your skill set while maximizing your time. We couple academic theory and business knowledge with practical, real-world application. Through online learning sessions, you will have an opportunity to grow your professional network and interact with University of Chicago instructors and your classmates.

What Our Participants Say

Fernando Óscar Pazos CherresAdministration and Finance Manager at Derrama Magisterial-img-U-Chicago

Excellent learning experience. I thank the University of Chicago. In my professional and personal life, this knowledge will be very useful to me as it will help me to know myself better, know the rest of the people around me, and enrich my thought processes and decision-making in all my activities, mainly in the field of finance, in order to generate more value.

Fernando Óscar Pazos Cherres
Administration and Finance Manager at Derrama Magisterial
Peru, June 2021
Nicté SerraFinance Director at REPCA-img-U-Chicago

The course was enlightening, exceeded my expectations, and opened up a new area of knowledge that I know will make a big difference in my professional development. I especially want to congratulate and thank Andrés, our teaching assistant. His level of knowledge and, above all, his degree of commitment to the course is remarkable. His constant collaboration and willingness were a key part of the success of the program. Finally, I would like to thank the entire team. I thoroughly enjoyed the experience.

Nicté Serra
Finance Director at REPCA
Guatemala, June 2021

“By directly involving students in the challenge of securing the right data and exploring potential solutions, we’re equipping them with the foundational skills required to deliver tangible results to clients.”

– Greg Green, PhD, Associate Senior Instructional Professor and Director of the MScA Program at the University of Chicago.

Register Now

Are you ready to take a leap forward and immerse yourself in a new learning experience? Register online or schedule a call to request more information. Enroll now and gain valuable knowledge and skills that will boost your career to the next level.