Finance Theory and Asset Pricing

Introduction 1. A Brief History of Finance Theory PART I: THE ONE PERIOD MODEL 2. Two Date Models: Complete Markets 3. Incomplete Markets with Production 4. Arbitrage and Asset Pricing: Induced Preference Approach 5. Martingale Pricing Methods 6. Representative Consumers 7. Diversification and Asset Pricing PART II: THE BASIC MULTIPERIOD MODEL 8. Multiperiod Asset Pricing: Complete Markets 9. General Asset Pricing in Complete Markets 10. Multiperiod Asset Pricing: Incomplete Asset Markets PART III: THE GENERAL MULTIPERIOD MODEL 11. The General Model and Asset Price Characterization 12. Arbitrage and Discounting Formulae 13. Pareto Optimality 14. Orthonormal Bases, Factor Pricing, and Multi-Beta Asset Pricing 15. Idiosyncrasies that are Irrelevant for Security Pricing 16. Discrete Stochastic Integrals and Multiperiod Factor Pricing 17. Fiat Money as an Asset, Nominal Assets, and International Finance 18. Extensions to the Basic Model

Arbitrage pricing theory · Business · Capital asset pricing model · Consumption-based capital asset pricing model · Diversification (marketing strategy) · Economics · Financial economics · Incomplete markets · Investment theory · Martingale (probability theory) · Martingale pricing · Microeconomics · Rational pricing · Risk-neutral measure · Stochastic discount factor · Economic theories and models · Mathematics