We make thousands of decisions every day. Do I cross the road now, or wait for the oncoming truck to pass? Should I eat fries or a salad for lunch? How much should I tip the cab driver? We usually make these decisions with almost no thought, using what psychologists call “heuristics” – rules of thumb that enable us to navigate our lives. Without these mental shortcuts, we would be paralyzed by the multitude of daily choices. But in certain circumstances, these shortcuts lead to predictable errors – predictable, that is, if we know what to watch out for. Did you know, for example, that we are naturally biased towards selling investments that are doing well for us, but holding on to those that are doing poorly? Or that we often select sub-optimal insurance payment plans, and routinely purchase insurance that we don’t even need? And why do so many of us fail to enroll in our employer’s corporate retirement plans, even when the employer offers to match our contributions?
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- 5 stars61.49%
- 4 stars25.67%
- 3 stars8.58%
- 2 stars2.50%
- 1 star1.74%
Good course! There is just one thing I would improve here - an explanation of the mistakes after the tests are done. This improvement should increase the student`s understanding of specific topics.
Very good course. I learnt about many biases which I often make in making financial decisions and now I hope I will correct those. Cheers to the team coursera for this course
This Course is really helpful to understand what goes inside the mind of investors and how they fall prey to the biases that may not work out in their favor in the long run.
Great brief introduction to behavioral finance. Covers many topics, directly to the point. Only preferred change would be more videos rather than readings but otherwise phenomenal course.
Will I receive a transcript from Duke University for completing this course?