Description

Targeting readers with backgrounds in economics, Intermediate Financial Theory, Third Edition includes new material on the asset pricing implications of behavioral finance perspectives, recent developments in portfolio choice, derivatives-risk neutral pricing research, and implications of the 2008 financial crisis. Each chapter concludes with questions, and for the first time a freely accessible website presents complementary and supplementary material for every chapter. Known for its rigor and intuition, Intermediate Financial Theory is perfect for those who need basic training in financial theory and those looking for a user-friendly introduction to advanced theory.

Key Features

  • Completely updated edition of classic textbook that fills a gap between MBA- and PhD-level texts
  • Focuses on clear explanations of key concepts and requires limited mathematical prerequisites
  • Online solutions manual available
  • Updates include new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, and a new chapter on asset management for the long-term investor

Readership

Advanced undergraduates and graduate students worldwide working on financial economics and the theory of finance.

Table of Contents

1. Role of Financial Markets
2. Challenges of Asset Pricing
II.
3. Choices in Risky Situations
4. Measuring Risk and Risk Aversion
5. Risk Aversion and Investment Decisions, Part 1
6. Risk Aversion and Investment Decisions, Part 2
7. Risk Aversion and Investment Decisions, Part 3
III.
8. The CAPM
9. Arrow-Debreu Pricing, Part I
10. The Consumption Capital Asset Pricing Model (CCAPM)
11. Arrow Debreu Pricing, Part II
IV.
12. The Martingale Measure in Discrete Time, Part 1
13. The Martingale Measure in Discrete Time, Part 2
14. The APT
15. Continuous Time Finance
16. Portfolio Management in the Long Run
17. Financial Structure and Firm Valuation in Incomplete Markets
V.
18. Financial Equilibrium with Differential Information

Details

No. of pages:
580
Language:
English
Copyright:
© 2015
Published:
Imprint:
Academic Press
eBook ISBN:
9780123868718
Print ISBN:
9780123865496