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Course NameFundamentals of Investments
InstructorKaneko, Seichi
MajorMajor Subjects
Course goalsThe student should be able to: explain time value of money and calculate various rates of return, calculate mean and standard deviation, describe the definition of risk and talk about it in statistical terms, construct an investment portfolio.
Course outlineThis course is designed for students who intend to learn basic investment theory through English. Essentially, investment theory is calculation of risk and return which is best acquired by repeated practice. For example, the meaning of standard deviation (hyoujun hensa) will be best learned by calculating it repeatedly. Repeated practice is also essential in learning a foreign language. Hence, participation in this class will help students kill two birds with one stone, i.e., acquiring fundamental investment analysis skills while enhancing command of English language. Topics covered include the following: stocks, bonds and options, time value of money, compound interest, arbitrage trading, dividend discount model, basic statistics, capital asset pricing model. Weekly homework and frequent quizzes and mini tests, along with the final test, will help students achieve the learning outcomes shown above. Also, students will make a presentation on their long term investment plans. On average, students are expected to spend one and a hours to prepare for a class.
Evaluation Scale and Policies40% Participation in classroom activities 30% Homework and mini tests 30% Final test and presentation
PrerequisitesOfficial language is English and no Japanese language is permitted in the class. Students are expected to participate in the class actively. Bring a calculator to solve quizzes in the class.
Texts, materials, and suppliesStudy materials will be provided in the class. Optional reference: 金子誠一・佐井りさ『増補改訂 証券アナリストのための数学再入門』ときわ総合サービス、2012年。
Course Schedule/Plan1. Orientation and overview of the course.
2-3. Stocks, bonds and options.
4-6. Time value of money and various methods of calculating investment return. Mini test.
7. Derivatives and arbitrage trading.
9-11. Basic statistics and the meaning of risk. Mini test.
12-13. Capital Asset Pricing Model and Portfolio Construction. Preparation for presentation.
14. Final Test.
15. Presentation.
The above schedule is subject to change. More detailed schedule of activities will be provided in the class.