Table of Contents
Chapter 1 Psychology and Finance1
Chapter 2 Overconfidence13
Chapter 3 Pride and Regret27
Chapter 4 Risk Perceptions41
Chapter 5 Decision Frames46
Chapter 6 Mental Accounting69
Chapter 7 Forming Portfolios83
Chapter 8 Representativeness and Familiarity97
Chapter 9 Social Interaction and Investing113
Chapter 10 Emotion and Investment Decisions127
Chapter 11 Self-Control and Decision-Making143
Chapter 12 The Physiology of Investing159
Chapter 13 The Meme Investors of 2021177
Index187
Course Details
Author: John R. Nofsinger
Publication/Revision Date: 1/1/2024
Course Exam Questions (online): 35 (multiple-choice)
Program Delivery Method: Self-Study
Available Formats of Course Text: Hardcopy (paperback) book sent in the mail or eBook purchased separately from the publisher
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CFP® | Overview | None | None |
* This program is appropriate for professionals at all organizational levels.
Sponsor ID Numbers
CFP Board Sponsor I.D.: 1008 — Course I.D.: 257148
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Define prospect theory.
- Recognize how overconfidence is a detriment to investing.
- Define regret of omission.
- Define disposition effect.
- Recognize how risk perceptions play a role in investment strategy.
- Associate how individuals make investment decisions.
- Recognize how emotions effect perceptions of money.
- Recognize how psychological tendencies can effect investment goals.
- Define representativeness error.
- Recognize how biases effect investors’ decisions.
- Define the role social interaction plays in investing.
- Recognize the ways in which emotions influence investor behavior.
- Recognize how self-control effects investor behavior.
