Financial Market Theory: Equilibrium, Efficiency, and Information

Author: Emilio Barucci
Publisher:
Publication Date: 2006-05-01
Features: Financial Market Theory elaborates on classical asset pricing theory, which includes iconic concepts such as portfolio selection, risk aversion, the basic asset pricing theorem, portfolio boundaries, CAPM, CCAPM, APT, the Modigliani-Miller theorem, no-arbitrage/risk-neutral valuation, and financial market information. Starting from an empirical analysis of the testing of these theories, the author explores recent literature, highlighting the main developments within classical asset pricing theory and new approaches to resolving unresolved issues (such as behavioral finance). This is the only textbook that explains the fundamentals of financial market economics in rigorous mathematical language while also providing a comprehensive and independent critique based on empirical findings. Financial Market Theory is an advanced textbook suitable for first-year graduate courses in financial markets, economics, or financial mathematics. It is independent and complete, with a framework for explaining topics that is easily understandable for economists and professionals with a background in basic mathematics. For those lacking foundational microeconomic theory, the book begins by providing the necessary tools to understand the theoretical analysis. This analytical approach makes the book an important reference for professionals in the insurance industry, banking, investment funds, and financial consulting, as well as an excellent graduate-level textbook. Financial Market Theory elaborates on classical asset pricing theory, which includes iconic concepts such as portfolio selection, risk aversion, the basic asset pricing theorem, portfolio boundaries, CAPM, C...