• Behavioral Finance Micro versus Behavioral Finance Macro
• Homo Economicus versus the Behaviorally Biased Human

• Standard Finance versus Behavioral Finance
• Efficient Markets versus Irrational Markets

• Decision Making Under Uncertainty
• Psychographic Models Used by Behavioral Finance

Lesson 2: Using Behavioral Finance with Private Clients

• Key Benefits of Behavioral Finance

• Limitations of Risk Tolerance Questionnaires

• Ways to Identify Irrational Behaviors in Your Clients

Lesson 3: Introduction to Behavioral Investor Types

• Identifying Behavioral Investor Types (BITs)

• Behavioral Investor Types (BITs)
  • Investor Biases Defined
  • Differences Between Cognitive and Emotional Biases
  • Overview of Behavioral Investor Types (Bits)

Lesson 4: Passive Preserver (PP) Behavioral Investor Type

• Passive Preserver Characteristics

• Emotional Biases
• Cognitive Biases

• Advice for Passive Preservers
• Introduction to Building Asset Allocations for PP Clients

Lesson 5: Friendly Follower (FF) Behavioral Investor Type

• Friendly Follower Characteristics

• Cognitive Biases

• Advice for Friendly Followers
• Introduction to Building Asset Allocations for FF Clients

Lesson 6: Independent Individualist (II) Behavioral Investor Type

• Independent Individualist Characteristics

• Cognitive Biases

• Advice for Independent Individualist
• Introduction to Building Asset Allocations for II Clients

Lesson 7: Active Accumulator (AA) Behavioral Investor Type

• Active Accumulator Characteristics

• Emotional Biases
• Cognitive Bias

• Advice for Active Accumulators
• Introduction to Building Asset Allocations for AA Clients

Lesson 8: Creating a Behaviorally Modified Asset Allocation

• Behaviorally Modified Asset Allocation

• Developing a Best Practical Allocation
  • Recommendation
  • Developing the BMAA
  • BMAA for Clients (BITs) With and Without an SLR

Lesson 9: Putting It All Together

This lesson is about putting together the concepts learned in the first eight lessons in the form of four mini scenarios involving Ms. Starfish, a hypothetical client. The final exam consists of 40 multiple-choice questions. A grade of 70% or higher must be obtained to pass.