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New York Institute of Finance

Portfolio Theory and Behavioral Finance

Jul 24, 2020
New York, New York, United States
USD 1116
USD 1116 per day
Jul 24, 2020
Online
USD 1116

How it works

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Description

Develop a thorough understanding of the implications of behavioral finance for portfolio management. Critically assess the competing claims of behavioral finance and modern portfolio theory for real-world portfolio management.

This course is a component of the Advanced Portfolio Management Professional Certificate.

Prerequisite knowledge:

  • Knowledge of portfolio theoretic concepts including mean-variance measures, portfolio diversification, systematic risk
  • Intermediate MS Excel skills (data tables, lookup functions, solver, etc.)
  • Knowledge of elementary calculus, probability theory and statistical methods

CURRICULUM

Day 1

MODULE 1: RISK AVERSION: THE PSYCHOLOGY OF RISK

  • Decision making under uncertainty
  • Utility functions and measures of risk aversion
  • Overview of prospect theory
  • Cognitive biases
  • Framing

MODULE 2: MODERN PORTFOLIO THEORY

  • Review of the Capital Asset Pricing Model (CAPM)
  • Two fund separation
  • Arbitrage pricing theory and multi-factor models
  • Does the theory work? A review of the evidence
  • A three-factor model

MODULE 3: A BEHAVIORAL APPROACH TO PORTFOLIO MANAGEMENT

  • Trading Biases
  • Hanging on to losers: The disposition effect
  • Under-diversification
  • Herding
  • Implementing behavioral portfolio management
  • Value, growth and momentum strategies

WHAT YOU'LL LEARN

  • Survey the theory of decision making under uncertainty
  • Understand the implications of moderrn portfolio theory for real-world portfolio management
  • Review cutting edge developments regarding multi-factor portfolio models
  • Be aware of the key propositions of behvaioral finance theory
  • Crtically assess the implications of behavioral finance for real-world portfolio management

Who should attend

  • Portfolio managers
  • wealth managers and financial advisors.

Next dates

Jul 24, 2020
New York, New York, United States
USD 1116
USD 1116 per day
Jul 24, 2020
Online
USD 1116

How it works

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