G6169133 Financial Economics 2

Hiroshima University Syllabus

Japanese

Academic Year 2024Year School/Graduate School School of Economics Economics Day Course

Lecture Code G6169133 Subject Classification Specialized Education

Subject Name ファイナンス２

Subject Name
（Katakana）ファイナンス２

Subject Name in
English Financial Economics 2

Instructor ONO SADAYUKI

Instructor
(Katakana) オノ　サダユキ

Campus Higashi-Hiroshima Semester/Term 3rd-Year, First Semester, 2Term

Days, Periods, and Classrooms (2T) Weds5-8：ECON B155

Lesson Style Lecture Lesson Style
(More Details) 　

Credits 2.0 Class Hours/Week 　 Language of Instruction J : Japanese

Course Level 3 : Undergraduate High-Intermediate

Course Area（Area） 24 : Social Sciences

Course Area（Discipline） 03 : Economics

Eligible Students

Keywords

Special Subject for Teacher Education 　 Special Subject 　

Class Status
within Educational
Program
(Applicable only to targeted subjects for undergraduate students)
Criterion referenced
Evaluation
(Applicable only to targeted subjects for undergraduate students) Economic Analysis
（Abilities and Skills）
・Be able to utilize knowledge of Public Finance and Financial Economics to solve problems which have a close relevance for ordinary people

Class Objectives
/Class Outline Financial Economics 2 plans to teach (1) relationship between risk and return on financial assets, (2) foreign exchange rate, (3) bond, (4) financial derivatives. In class, basic ideas and theory regarding these topics are introduced and analysed. Additionally, news about financial markets that are shown on Japanese and foreign economics journals, for instance, Nikkei (Japanesse daily newspaper), might be presented and discussed.

Class Schedule Lecture Topic
(1) Risk and Return: Explains how risk and return are measured and investors' attitudes toward risk.
(2) Capital Asset Valuation Model 1: Describes important assumptions and conclusions of the capital asset pricing model.
(3) Capital asset pricing model 2: Explains in detail investment trusts (funds).
(4) Capital Asset Valuation Model 3: Considers the relationship between risk and return using the capital asset pricing model and finds an appropriate measure of risk.
(5) The Efficient Market Hypothesis: Examines the relationship between asset prices and information held by investors.
(6) Exchange Rate 1: Examines the direct and indirect effects of exchange rates on the returns on foreign assets.
(7) Exchange Rate 2: Introduces three main theories that explain exchange rate movements.
(8) Futures and Forward Trading: Explains the overview of financial derivatives and futures and forward trading.
(9) Option 1: Describes the important aspects of an option on a derivative.
(10) Option 2: Derives the option price relationship from the condition that arbitrage is not possible.
(11) The Black-Scholes-Merton option pricing equation: Introduces the key theoretical formulas for option prices and observes the assumptions, conclusions, and problems.
(12) Exchange rate swap and interest rate swap: Introduces two main types of swaps for derivative financial instruments.
(13) Bond 1: Describes important issues for one of the major financial assets, bond.
(14) Bond 2: Considers the yield that provides the return on the bond.
(15) Credit default swaps (CDS): Discusses the fundamentals and fair value of CDS.

Text/Reference
Books,etc. As reference,
•　コーポレートファイナンスの原理; by ステファン・ロス, ランドルフ・ウェスターフィールド、ジェフリイ・ジャフィ;
translated into Japanese by 大野薫
•　コーポレートファイナンス; by リチャード・ブリーリー, スチュワート・マイヤーズ; translated into Japanese by 藤井
真理子、国枝繁樹
•　先物・オプション取引入門; by ジョン・ハル; translated into Japanese by 小林孝雄, オーパスワン
• Modern Portfolio Theory and Investment Analysis; by Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, William N. Goetzmann

PC or AV used in
Class,etc. 　

(More Details)

Learning techniques to be incorporated 　

Suggestions on
Preparation and
Review Review of each lecture might be useful.

Requirements None

Grading Method At the end of the term, you are required to submit a report, and it is evaluated based on its content. In addition, the report is evaluated assuming that you understand at least all the lecture notes and all the lecture content. In advance, you will be informed of the detailed rules and format of the term-end report by e-mail.

Practical Experience

Summary of Practical Experience and Class Contents based on it

Message Information on the lecture will be sent to each university account e-mail when necessary. Around June 10th (the first lecture will be on June 12th), an e-mail containing lecture information will be distributed to students who have already got enrolled in this course.

Other

Please fill in the class improvement questionnaire which is carried out on all classes.
Instructors will reflect on your feedback and utilize the information for improving their teaching.

Academic Year	2024Year	School/Graduate School	School of Economics Economics Day Course
Lecture Code	G6169133	Subject Classification	Specialized Education
Subject Name	ファイナンス２
Subject Name （Katakana）	ファイナンス２
Subject Name in English	Financial Economics 2
Instructor	ONO SADAYUKI
Instructor (Katakana)	オノ　サダユキ
Campus	Higashi-Hiroshima	Semester/Term	3rd-Year, First Semester, 2Term
Days, Periods, and Classrooms	(2T) Weds5-8：ECON B155
Lesson Style	Lecture	Lesson Style (More Details)

Credits	2.0	Class Hours/Week		Language of Instruction	J : Japanese
Course Level	3 : Undergraduate High-Intermediate
Course Area（Area）	24 : Social Sciences
Course Area（Discipline）	03 : Economics
Eligible Students
Keywords
Special Subject for Teacher Education		Special Subject
Class Status within Educational Program (Applicable only to targeted subjects for undergraduate students)
Criterion referenced Evaluation (Applicable only to targeted subjects for undergraduate students)	Economic Analysis （Abilities and Skills）・Be able to utilize knowledge of Public Finance and Financial Economics to solve problems which have a close relevance for ordinary people
Class Objectives /Class Outline	Financial Economics 2 plans to teach (1) relationship between risk and return on financial assets, (2) foreign exchange rate, (3) bond, (4) financial derivatives. In class, basic ideas and theory regarding these topics are introduced and analysed. Additionally, news about financial markets that are shown on Japanese and foreign economics journals, for instance, Nikkei (Japanesse daily newspaper), might be presented and discussed.
Class Schedule	Lecture Topic (1) Risk and Return: Explains how risk and return are measured and investors' attitudes toward risk. (2) Capital Asset Valuation Model 1: Describes important assumptions and conclusions of the capital asset pricing model. (3) Capital asset pricing model 2: Explains in detail investment trusts (funds). (4) Capital Asset Valuation Model 3: Considers the relationship between risk and return using the capital asset pricing model and finds an appropriate measure of risk. (5) The Efficient Market Hypothesis: Examines the relationship between asset prices and information held by investors. (6) Exchange Rate 1: Examines the direct and indirect effects of exchange rates on the returns on foreign assets. (7) Exchange Rate 2: Introduces three main theories that explain exchange rate movements. (8) Futures and Forward Trading: Explains the overview of financial derivatives and futures and forward trading. (9) Option 1: Describes the important aspects of an option on a derivative. (10) Option 2: Derives the option price relationship from the condition that arbitrage is not possible. (11) The Black-Scholes-Merton option pricing equation: Introduces the key theoretical formulas for option prices and observes the assumptions, conclusions, and problems. (12) Exchange rate swap and interest rate swap: Introduces two main types of swaps for derivative financial instruments. (13) Bond 1: Describes important issues for one of the major financial assets, bond. (14) Bond 2: Considers the yield that provides the return on the bond. (15) Credit default swaps (CDS): Discusses the fundamentals and fair value of CDS.
Text/Reference Books,etc.	As reference, •　コーポレートファイナンスの原理; by ステファン・ロス, ランドルフ・ウェスターフィールド、ジェフリイ・ジャフィ; translated into Japanese by 大野薫 •　コーポレートファイナンス; by リチャード・ブリーリー, スチュワート・マイヤーズ; translated into Japanese by 藤井真理子、国枝繁樹 •　先物・オプション取引入門; by ジョン・ハル; translated into Japanese by 小林孝雄, オーパスワン • Modern Portfolio Theory and Investment Analysis; by Edwin J. Elton, Martin J. Gruber, Stephen J. Brown, William N. Goetzmann
PC or AV used in Class,etc.
(More Details)
Learning techniques to be incorporated
Suggestions on Preparation and Review	Review of each lecture might be useful.
Requirements	None
Grading Method	At the end of the term, you are required to submit a report, and it is evaluated based on its content. In addition, the report is evaluated assuming that you understand at least all the lecture notes and all the lecture content. In advance, you will be informed of the detailed rules and format of the term-end report by e-mail.
Practical Experience
Summary of Practical Experience and Class Contents based on it
Message	Information on the lecture will be sent to each university account e-mail when necessary. Around June 10th (the first lecture will be on June 12th), an e-mail containing lecture information will be distributed to students who have already got enrolled in this course.
Other
Please fill in the class improvement questionnaire which is carried out on all classes. Instructors will reflect on your feedback and utilize the information for improving their teaching.

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