- 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
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.
Advanced undergraduates and graduate students worldwide working on financial economics and the theory of finance.
Intermediate Financial Theory, 3rd Edition
Chapter 1: "Role of Financial Markets"
Chapter 2: "Challenges of Asset Pricing"
Chapter 3: "Choices in Risky Situations"
Chapter 4: "Measuring Risk and Risk Aversion"
Chapter 5: "Risk Aversion and Investment Decisions, Part 1"
Chapter 6: "Risk Aversion and Investment Decisions, Part 2"
Chapter 7: "Risk version and Investment Decisions, Part 3"
Chapter 8: "The CAPM"
Chapter 9: "Arrow-Debreu Pricing, Part I"
Chapter 10: "The Consumption CAPM"
Chapter 11: "The Production CAPM"
Chapter 12: "Arrow Debreu Pricing, Part II"
Chapter 13: "The Martingale Measure in Discrete Time, Part 1"
Chapter 14: "The Martingale Measure in Discrete Time, Part 2"
Chapter 15: "Applications of Options Concepts and Methodologies"
(Martingale Measure in Discrete Time, Part 3)
Chapter 16: "The APT"
Chapter 17: "Continuous Time Finance"
Chapter 18: "Portfolio Management in the Long Run"
Chapter 19: "Financial Structure and Firm Valuation in Incomplete Markets"
Chapter 20: "Differential Information"
Chapter 21: "Financial Contracts"
Chapter 22: "The Financial Crisis"
Quotes and reviews
"This is an excellent book that introduces financial asset pricing theory as a natural extension of microeconomic and general equilibrium theory. The exposition of classic and recent results is clear, thorough and accessible to any economist or graduate student who has a good grounding in microeconomic theory. Having mastered this material the reader is well equipped to tackle the many variations of asset pricing models in the literature."
--Frank Milne, Queen’s University, Professor of Economics and Finance
"This book is ideally suited to students wishing to gain a deeper understanding of the basic concepts of financial economics beyond those presented in a typical MBA program without having to deal with unnecessary mathematical details. The exposition is superb and enriching of intuition. The book, written by two of the professions leading experts, is unique."
-- Rajnish Mehra, Professor of Finance, University of California, Santa Barbara