NCHU Course Outline
Course Name (中) 財務理論(6070)
(Eng.) Financial Theory
Offering Dept Department of Finance
Course Type Required Credits 3 Teacher YANG TUNG-HSIAO
Department Department of Finance/Graduate Language 中/英文 Semester 2026-SPRING
Course Description This course provides an introduction to the fundamentals of finance theory. The primary focus of the course will be upon the individual's consumption/investment decision under risk aversion and uncertainty. (含自主學習Self-learning: 第17、18週)
Prerequisites
self-directed learning in the course Y
Relevance of Course Objectives and Core Learning Outcomes(%) Teaching and Assessment Methods for Course Objectives
Course Objectives Competency Indicators Ratio(%) Teaching Methods Assessment Methods
Models studied will include single and multiple periods in both discrete and continuous time. Students are expected to be prepared fully to discuss in depth the assigned readings for each class period. Class time will be devoted to lectures and class discussions of assigned readings. Upon completion of the class you will have developed the skills necessary to understand fully the theoretical foundation supporting most empirical work in financial economics.
1.Critical Thinking
6. Independent problem solving
80
20
Discussion
Lecturing
Written Presentation
Oral Presentation
Quiz
Course Content and Homework/Schedule/Tests Schedule
Week Course Content
Week 1 Part A. Introduction
Week 2 Introduction to Finance and Course Overview (Chapters 1-2)
Week 3 Introduction to Finance and Course Overview (Chapters 1-2)
Week 4 Part B. Valuation
Week 5 Fixed-Income Securities (Chapters 3, 24-25)
Week 6 Fixed-Income Securities (Chapters 3, 24-25)
Week 7 Common Stocks (Chapter 4)
Week 8 Common Stocks (Chapter 4)
Week 9 Midterm Exam
Week 10 Earnings per share (EPS), price-to-earnings ratio (P/E), discount rates Forward and Futures Contracts (Chapter 27)
Week 11 Using forwards and futures to hedge Options (Chapters 21-22)

Week 12 Using forwards and futures to hedge Options (Chapters 21-22)
Week 13 Part C. Risk and Return
Week 14 Introduction to Risk and Return (Chapters 7, 26.1, 26.4)
Week 15 Risk Analytics (Chapter 8)
Week 16 Final Exam Self-learning project: The cases or papers will be posted on iLearning webpage before midterm exam and everyone needs to choose one case or paper out of all materials to read and summarize the main ideas in the case or paper. In addition, combining the material you learn in this course, you must write a review report of the case or paper. The due date of the final report is on 6/15. No submission is allowed after the due date. Thanks for your cooperation. Self-learning project
self-directed
learning

Evaluation
Midterm exam: 40%, Team project: 40%, and Self-learning project: 20%.
In this class, there is no makeup exam allowed.
Textbook & other References
Primary: Principles of Corporate Finance (13th Edition. 2019), by Richard A. Brealey, Stewart C. Myers, Franklin Allen, 台灣代理:華泰書局
Supplement: 1. Financial Theory and Corporate Policy (4th ed. 2005), by Copeland, Weston, Shastri, 台灣代理:新陸書局 (The first half is similar to the textbook chosen. The second half includes good summary of theoretical and empirical topics in corporate finance.)

Teaching Aids & Teacher's Website

Office Hours
Thursday, 8:00~9:00
Sustainable Development Goals, SDGs(Link URL)
04.Quality Education   12.Responsible Consumptioninclude experience courses:N
Please respect the intellectual property rights and use the materials legally.Please respect gender equality.
Update Date, year/month/day:None Printed Date, year/month/day:2026 / 1 / 09
The second-hand book website:http://www.myub.com.tw/