Behavioral finance has shown that all people, even financial experts, are prone to making irrational and suboptimal financial decisions. It also explores how people have wants that extend far beyond traditional finances' assumption of wanting the highest return at the lowest risk. We are not perfectly rational economic robots; we are easily driven by many wants and emotions while working with limited time, knowledge, and energy.

This course is the second of a three-part course series on behavioral finance. The three parts are:

• Part 1: Introduction and Financial Decision-Making
• Part 2: Thinking Errors and Rules of Thumb
• Part 3: Application to Business and Personal Finance

This course explores many of the biases and heuristics exhibited by all people, even the experts. Biases are predispositions we have toward certain errors. A heuristic is a “rule of thumb.” These biases and heuristics cause people, companies, and markets to deviate from traditional finance.

You'll learn from an author that teaches these concepts to MBA students at a university as well as to business advisors and staff. He is a CPA that's been a CFO of multiple companies. Rob also has a master's degree in personal financial planning and a graduate certificate in financial therapy. He served as program manager for a group of investment advisors.

This course leads you from foundational finance concepts to practical applications in both personal finance and business finance.

Course Key Concepts: Finance, Behavioral Finance, Economics, Personal Financial Planning, Personal Finance, Business Finance, Business Financial Management, Business Management, Business Planning, Pricing.