I have seen some posts on the “dryness” of behavioral finance and figured I would recommend a great book about the subject. The book is titled Misbehaving, written by Richard Thaler, who won a Nobel Prize in economics and its a great read (even outside of the CFA curriculum). I know not a lot of people dont want to take on extra reading while studying, but it has some great detailed examples of the same biases (because Richard Thaler discovered most of them) talked about in the CFA curriculum.
When I was in undergrad, my economics teacher asked us to bring in a bag of Hershey kisses or other comparable small sized chocolates, alongside a bunch of chewy fruity candy (like gummy worms).
She then proceeded to bundle them up in different packages to model to us what an indifference curve was.
Moral of the story - these are not hard concepts at all. Behavioral finance is more interesting than it is dry personally. I think people are just complaining for the sake of complaining (which I love to do too).
Sorry beg to differ. BF remains the most elusive and difficult subject to master. Personal finance, IPS and BF were the culprit why I could not pass the first time around. Or may be I am idiot.
BF is pretty much the topic where you can take off your hard finance hat and look at it from an emotional standpoint. Once you embrace that I feel the topic becomes much easier.
Lol. You’re right. Pension accounting is better…