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Ebook: Financial Markets Theory: Equilibrium, Efficiency and Information

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27.01.2024
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Financial Markets Theory presents classical asset pricing theory, a theory composed of milestones such as portfolio selection, risk aversion, fundamental asset pricing theorem, portfolio frontier, CAPM, CCAPM, APT, the Modigliani-Miller Theorem, no arbitrage/risk neutral evaluation and information in financial markets. Starting from an analysis of the empirical tests of the above theories, the author provides a discussion of the most recent literature, pointing out the main advancements within classical asset pricing theory and the new approaches designed to address open problems (e.g. behavioural finance). It is the only textbook to address the economic foundations of financial markets theory from a mathematically rigorous standpoint, and to offer a self-contained critical discussion, based on empirical results. Financial Markets Theory is an advanced book, well-suited for a first graduate course in financial markets, economics or financial mathematics. It is self-contained and introduces topics in a setting accessible to economists and practitioners equipped with a basic mathematical background. For those not acquainted with standard microeconomic theory, the tools needed to follow the analysis are presented early in the book. The approach makes this a vital handbook for practitioners in insurance, banking, investment funds and financial consultancy, as well as an excellent graduate-reference textbook.








Content:
Front Matter....Pages i-xii
Prerequisites....Pages 1-11
Choices under Risk....Pages 13-42
Stochastic Dominance, Mutual Funds Separation and Portfolio Frontier....Pages 43-70
General Equilibrium Theory and Risk Exchange....Pages 71-110
Risk Premium: Capital Asset Pricing Model and Asset Pricing Theory....Pages 111-141
Multiperiod Market Models....Pages 143-216
Information and Financial Markets....Pages 217-251
Uncertainty, Rationality and Heterogeneity....Pages 253-307
Financial Markets Microstructure....Pages 309-330
Corporate Finance....Pages 331-355
Intermediation and Regulation....Pages 357-390
Back Matter....Pages 391-467



Content:
Front Matter....Pages i-xii
Prerequisites....Pages 1-11
Choices under Risk....Pages 13-42
Stochastic Dominance, Mutual Funds Separation and Portfolio Frontier....Pages 43-70
General Equilibrium Theory and Risk Exchange....Pages 71-110
Risk Premium: Capital Asset Pricing Model and Asset Pricing Theory....Pages 111-141
Multiperiod Market Models....Pages 143-216
Information and Financial Markets....Pages 217-251
Uncertainty, Rationality and Heterogeneity....Pages 253-307
Financial Markets Microstructure....Pages 309-330
Corporate Finance....Pages 331-355
Intermediation and Regulation....Pages 357-390
Back Matter....Pages 391-467
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