Intermediate Financial Theory

Jean-Pierre Danthine and John B. Donaldson
Additional contact information
John B. Donaldson: Mario J. Gabelli Professor of Finance at Columbia University Business School, New York, NY, USA

in Elsevier Monographs from Elsevier, currently edited by Candice Janco

Abstract: 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. 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

Keywords: Allais paradox; Arbitrage Pricing Theory; Arbitrage pricing theory; Arrow-Debreu; Arrow-Debreu (AD) pricing; Arrow-Debreu model; Arrow-Debreu prices; Arrow-Debreu pricing theory; Arrow-Debreu securities; Arrow-Debreu setting; Arrow-Pratt measure; BE/ME ratio; Black-Scholes formula; Brownian motion; CAPM; CCAPM; CRRA; Canonical portfolio problem; Capital asset pricing model; Capital market line; Cash flow; Certainty equivalent; Closed-form pricing; Competitive equilibrium; Complex securities; Constant absolute risk aversion (CARA); Continuous time processes; Cross-correlations; Declining absolute risk aversion (DARA); Dybvig's evaluation; Economic rationality; Edgeworth-Bowley box; FOCs; Great Moderation; Great Recession; Great Recession case; Hansen-Jagannathan bounds; Jensen's inequality; Joint saving-portfolio problem; Lucas tree; MPT; Market model; Mean-variance space; Modern portfolio theory; Modigliani-Miller Theorem; Modigliani-Miller theorem; No-trade equilibrium; Nonnegativity constraints; Normality-of-returns; Optimal portfolio; Pareto optimal; Payoff; Positive correlation; Posttrade allocation; Present value (PV); Prospect Theory; Random variable; Random walks; Rational expectations equilibrium; Rational expectations hypothesis; Risk aversion; Risk sharing; Risk-free rate; Risk-neutral probabilities; Risk-neutral valuation; Sawtooth pattern; Sharpe ratio; State-by-state dominance; State-contingent claim; T-bill rate; VNM; Value Additivity Theorem; Walrasian equilibrium; Wiener process; Zero-beta CAPM (search for similar items in EconPapers)
Date: 2014 Originally published 2014-09-25.
Edition: 3
ISBN: 978-0-12-386549-6
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.sciencedirect.com/science/book/9780123865496
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:monogr:9780123865496

Access Statistics for this book

More books in Elsevier Monographs from Elsevier
Bibliographic data for series maintained by ().