Introduction to Financial Economics

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  • Format: Hardcover
  • Copyright: 2011-12-01
  • Publisher: Wiley

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Financial Economics has quickly established itself as a strong and growing market. Introduction to Financial Economics by Frank Fabozzi, Ted Neave, and Gaofu Zhou presents an introduction to basic financial ideas through a strong grounding in microeconomic theory. This calculus based text explores the theoretical framework for analyzing the decisions by individuals and managers of firms, and area which is common to both the financial economics and microeconomics. It also explores the interplay of these decisions on the prices of financial assets.

Table of Contents

Prefacep. ix
Acknowledgmentsp. xv
About the Authorsp. xvii
Introductionp. 1
Finance In A Certainty World With A Perfect Capital Marketp. 13
Consumer Financial Decisionsp. 15
Creating Wealth by Investing in Productive Opportunitiesp. 31
How Investors Value Firmsp. 50
Firm Financing Decisions in a Perfect Capital Marketp. 78
Firm Investment Decisionsp. 102
Financial Systemp. 119
Financial Systems, Governance, and Organizationp. 121
Market, Intermediary, and Internal Governancep. 151
Tools For Coping With Riskp. 177
The Microeconomic Foundations of Financial Economicsp. 179
Contingent Claims and Contingency Strategiesp. 199
Risk and Risk Managementp. 216
On Choosing Risk Measuresp. 234
Selection And Pricing Of Risky Assetsp. 255
Mean-Variance Portfolio Choicep. 257
Capital Asset Pricing Modelp. 287
The APTand Factor Modelsp. 317
General Principles of Asset Pricingp. 339
Pricing Corporate Securitiesp. 366
Derivative Instrumentsp. 383
Pricing Derivatives by Arbitrage: Linear Payoff Derivativesp. 385
Pricing Derivatives by Arbitrage: Nonlinear Payoff Derivativesp. 414
Capital Market Imperfections And The Limits To Arbitragep. 449
Capital Market Imperfections and Financial Decision Criteriap. 451
Impediments to Arbitragep. 479
Capital Structure Decisions In Imperfect Capital Marketsp. 499
When Capital Structure Decisions Matterp. 501
Financing Decisions in Practicep. 522
Financial Contracting and Deal Termsp. 545
Incorporating Risk In Capital Budgeting Decisionsp. 577
Capital Expenditure Plans in a Risky Worldp. 579
Evaluating Project Risk in Capital Budgetingp. 607
Subject Indexp. 639
Author Indexp. 650
Finance Appendices
Deal Termsp. 653
Corporate Debt Funding Instrumentsp. 658
Investment Bankers and the Issuance of Securitiesp. 665
Credit Riskp. 668
Financial Statementsp. 677
Financial Ratio Analysisp. 682
Estimating Cash Flows of Capital Budgeting Projectsp. 692
Merger and Acquisition Strategiesp. 697
Conglomerates as a Means of Overcoming Capital Market Imperfectionsp. 701
Lease Financingp. 705
Mathematical And Statistical Appendices
Taylor Series Approximationp. 716
Some Elementary Concepts Involving Probabilityp. 717
Continuous Probability Distributionsp. 722
Continuous Interest Ratesp. 730
Fundamentals of Matrix Algebrap. 733
Principal Component Analysis in Financep. 745
Subject Index (Web-Appendix A To P)p. 751
Author Index (Web-Appendix A To P)p. 754
Table of Contents provided by Publisher. All Rights Reserved.

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