Fundamentals of Financial Economics

Author: Chi-fu Huang
Publisher:
Publication Date: 2003-10-01
Features: The original English version of this book is an excellent work in financial economics. Since its publication, it has become a classic textbook in financial economics and has been widely used in renowned business schools in the United States as a teaching material and reference for introductory courses in financial economics for graduate students in finance and related fields. It is also used as a textbook for advanced courses on uncertain economics for graduate or undergraduate students. The book systematically and comprehensively explains the economic theoretical foundations and research methods of classical finance. Chapters 1 to 6 discuss two-period models. Chapter 1 analyzes individual behavior under uncertainty; Chapter 2 explains the important concept of stochastic dominance; Chapters 3 and 4 discuss portfolio theory, providing refined mathematical analysis; Chapter 5 begins to discuss state-contingent securities and their equilibrium valuation; Chapter 6 explains the general pricing rules for securities that provide returns in more than one state of nature; Chapters 7 and 8 discuss multi-period dynamic economic modeling, which is the core part of asset valuation and pricing theory; Chapter 9 discusses the important issue of market equilibrium under asymmetric information in financial markets; and Chapter 10 examines some econometric issues for testing the Capital Asset Pricing Model (CAPM), which is an introduction to very important research methods. This book can be used as the basic textbook for financial economics courses for senior undergraduate students in finance and master's and doctoral students (undergraduate students may selectively cover certain content), as well as for teaching materials or reference books for related courses in economics, accounting, business management, and other fields. It can also serve as a reference book for practitioners in the banking and financial industry to further their studies and improve their skills. The original English version of this book is an excellent work in financial economics. Since its publication, it has become a classic textbook in financial economics and has been widely used in renowned business schools in the United States as a teaching material and reference for introductory courses in financial economics for graduate students in finance and related fields. It is also used as a textbook for advanced courses on uncertain economics for graduate or undergraduate students. The book systematically and comprehensively explains the economic theoretical foundations and research methods of classical finance. Chapters 1 to 6 discuss two-period models. Chapter 1 analyzes individual behavior under uncertainty; Chapter 2 explains the important concept of stochastic dominance; Chapters 3 and 4 discuss portfolio theory, providing refined mathematical analysis; Chapter 5 begins to discuss state-contingent securities and their equilibrium valuation; Chapter 6 explains the general pricing rules for securities that provide returns in more than one state of nature; Chapters 7 and 8 discuss multi-period dynamic economic modeling, which is the core part of asset valuation and pricing theory; Chapter 9 discusses the important issue of market equilibrium under asymmetric information in financial markets; and Chapter 10 examines some econometric issues for testing the Capital Asset Pricing Model (CAPM), which is an introduction to very important research methods. This book can be used as the basic textbook for financial economics courses for senior undergraduate students in finance and master's and doctoral students (undergraduate students may selectively cover certain content), as well as for teaching materials or reference books for related courses in economics, accounting, business management, and other fields. It can also serve as a reference book for practitioners in the banking and financial industry to further their studies and improve their skills.