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Chapter 7: Behavioral Finance in Ethical Decision Making

Chapter 7: Behavioral Finance in Ethical Decision Making (CFA Level 1): Key concepts explained with clear definitions, formulas, and exam-focused examples.

In this section

  • Influence of Cognitive Biases on Ethical Conduct
    Influence of Cognitive Biases on Ethical Conduct (CFA Level 1): Understanding the Foundations of Cognitive Bias, Common Biases in Ethical Decision Making, and Confirmation Bias. Key definitions, formulas, and exam tips.
  • Emotional Biases and Decision-Making Pitfalls
    Emotional Biases and Decision-Making Pitfalls (CFA Level 1): Distinguishing Emotional Biases from Cognitive Biases, Key Emotional Biases in Ethical Context, and Loss Aversion. Key definitions, formulas, and exam tips.
  • Cultural and Organizational Pressures
    Cultural and Organizational Pressures (CFA Level 1): National Culture and Ethical Decision Making, Power Distance, and Collectivism vs. Individualism. Key definitions, formulas, and exam tips.
  • Addressing Groupthink and Herding Behavior
    Addressing Groupthink and Herding Behavior (CFA Level 1): Understanding Groupthink, Characteristics of Groupthink, and Real-World Examples of Groupthink. Key definitions, formulas, and exam tips.
  • Frameworks for Overcoming Bias in Ethical Judgments
    Frameworks for Overcoming Bias in Ethical Judgments (CFA Level 1): Common Frameworks in Ethical Decision Making, ICAR: Identify, Consider, Act, Reflect, and MED: Making Ethical Decisions. Key definitions, formulas, and exam tips.
  • Lessons from Behavioral Ethics in Negotiation and Client Relations
    Lessons from Behavioral Ethics in Negotiation and Client Relations (CFA Level 1): Bridging the Gap Between “Should” and “Do”, Core Behavioral Biases in Negotiation, and Behavioral Ethics Feedback Loop. Key definitions, formulas, and exam tips.

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Chapter 6: Global Regulatory Frameworks and Industry Collaboration
Chapter 8: Sustainability and Corporate Responsibility