TABLE OF CONTENTS

Preface

Acknowledgments

About the Authors

CHAPTER 1 Introduction

PART I FINANCE IN A CERTAINTY WORLD WITH A PERFECT CAPITAL MARKET

CHAPTER 2 Consumer Financial Decisions

CHAPTER 3 Creating Wealth by Investing in Productive Opportunities

CHAPTER 4 How Investors Value Firms

CHAPTER 5 Firm Financing Decisions in a Perfect Capital Market

CHAPTER 6 Firm Investment Decisions

PART II FINANCIAL SYSTEM

CHAPTER 7 Financial Systems, Governance, and Organization

CHAPTER 8 Market, Intermediary, and Internal Governance

PART III TOOLS FOR COPING WITH RISK

CHAPTER 9 The Microeconomic Foundations of Financial Economics

CHAPTER 10 Contingent Claims and Contingency Strategies

CHAPTER 11 Risk and Risk Management

CHAPTER 12 On Choosing Risk Measures

PART IV SELECTION AND PRICING OF RISKY ASSETS

CHAPTER 13 Mean-Variance Portfolio Choice

CHAPTER 14 Capital Asset Pricing Model

CHAPTER 15 The APT and Factor Models

CHAPTER 16 General Principles of Asset Pricing

CHAPTER 17 Pricing Corporate Securities

PART V DERIVATIVE INSTRUMENTS

CHAPTER 18 Pricing Derivatives by Arbitrage: Linear Payoff Derivatives

CHAPTER 19 Pricing Derivatives by Arbitrage: Nonlinear Payoff Derivatives

PART VI CAPITAL MARKET IMPERFECTIONS AND THE LIMITS TO ARBITRAGE

CHAPTER 20 Capital Market Imperfections and Financial Decision Criteria

CHAPTER 21 Impediments to Arbitrage

PART VII CAPITAL STRUCTURE DECISIONS IN IMPERFECT CAPITAL MARKETS

CHAPTER 22 When Capital Structure Decisions Matter

CHAPTER 23 Financing Decisions ...

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