Market Theory - Equilibrium, Efficiency, and Information

Author: Amelia
Publisher:
Publish Date: 2006-05-01
Features: Financial Market Theory elaborates on classical asset pricing theory, which includes iconic content such as portfolio selection, risk aversion, the fundamental asset pricing theorem, portfolio frontier, CAPM, CCAPM, APT, Modigliani-Miller theorem, no-arbitrage/risk-neutral valuation, and financial market information. Starting from the empirical testing analysis 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 not only explains the fundamentals of financial market economics in rigorous mathematical language but also provides 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 mathematics. For those lacking foundational microeconomic theory, the book provides the necessary tools at the beginning 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.