An Outline of Financial Economics

An Outline of Financial Economics

By Satya R. Chakravarty

Anthem Finance

“An Outline of Financial Economics” presents a systematic treatment of the theory and methodology of finance and economics. The book follows an analytical and geometric methodology, explaining technical terms and mathematical operations in clear, nontechnical language, and providing intuitive explanations of the mathematical results.

Hardback, 314 Pages

ISBN:9780857285072

May 2013

£80.00, $130.00

  • About This Book
  • Reviews
  • Author Information
  • Series
  • Table of Contents
  • Links
  • Podcasts

About This Book

“An Outline of Financial Economics” presents a systematic treatment of theory and methodology of finance and economics. It begins by discussing financial instruments, which form the basis of the theory of finance and are defined as legal documents recording monetary transactions. The text then goes on to analyze bonds – which are regarded as fixed income securities – in a simple framework, and to discuss the valuation of stocks and cash flows in detail.

The text follows an analytical and geometric methodology, explaining technical terms and mathematical operations in nontechnical language. It also provides intuitive explanations of the mathematical results of questions concerning important issues such as risk aversion, uncertainty, prospect theory and the theory of stochastic dominance.

The text also covers two alternative approaches to portfolio analysis – namely the mean-variance and mean-Gini approaches – and features an analysis of the Modigliani–Miller theorem, which has played a major role in the development of business finance. It discusses the capital asset pricing model and the intricacies of the methods for determining prices of different types of options, which give the right to buy or sell an asset. Conditions for non-arbitrage that do not allow advantage of price discrimination between markets are also developed.

Because of its wide coverage and analytical, articulate and authoritative presentation, “An Outline of Financial Economics” will be an indispensable book for finance researchers and undergraduate and graduate students in fields such as economics, finance, econometrics, statistics and mathematics.

Reviews

 “‘An Outline of Financial Economics’ provides a nice pedagogical exposition of the basic principles in financial economics, covering firm valuation and capital structure, fixed income securities and options, and portfolio theory and management. The most important concepts and results in the financial economics literature are well presented, including the Modigliani–Miller theorem in capital financing, hedging and dynamic replication in modern asset valuation principles, the Markowitz mean-variance portfolio model and the Sharpe–Lintner capital asset pricing model, and stochastic dominance. This text is well suited for science and engineering students at the undergraduate level, particularly those who would like to acquire some basic knowledge of financial economics at a higher level of quantitative reasoning than offered by standard business school texts in finance and investment.” —Professor Yue Kuen Kwok, Hong Kong University of Science and Technology

Author Information

Satya R. Chakravarty is Professor of Economics at the Indian Statistical Institute in Kolkata, India.

Series

Anthem Finance

Table of Contents

Preface; PART I: INTRODUCTION AND BASIC CONCEPTS; 1. Basic Concepts; 2. Intertemporal Decision-Making and Time Value of Money; 3. Risk and Uncertainty; PART II: FIRM VALUATION AND CAPITAL STRUCTURE; 4. Valuation of Stocks; 5. Valuation of Cash Flows and Capital Budget Allocation; 6. Financial Structure of a Firm; PART III: FIXED INCOME SECURITIES AND OPTIONS; 7. Valuation of Bonds and Interest Rates; 8. Markets for Options; 9. Arbitrage and Binomial Model; 10. Brownian Motion and Itō’s Lemma; 11. The Black–Scholes–Merton Model; 12. Exotic Options; 13. Risk-Neutral Valuation and Martingales; PART IV: PORTFOLIO MANAGEMENT THEORY; 14. Portfolio Management: The Mean-Variance Approach; 15. Stochastic Dominance; 16. Portfolio Management: The Mean-Gini Approach; Bibliography; Index

Links

No Podcasts for this title.

Latest Tweets

  • 'Start Me Up and Keep Me Growing: Management Learnings from the Rolling Stones' by Bertold Bär-Bouyssiere is finall… https://t.co/CNVRTj5DSJ

    - 05:28:26 on 17/06/2022
  • At @NorwayinUK last week Geir-Egil Løken, Svein Tore Bergestuen, Asbjørn Rachlew discussed their new Anthem publica… https://t.co/TnPH4u4wMD

    - 05:28:26 on 01/06/2022
  • RT @DrToddLandman: New book with @AnthemPress coming this July! Six years of podcasts crafted into a book: https://t.co/WB8ShDg3Hz #humanri…

    - 05:28:26 on 01/04/2022
  • 'In Defense of Reason After Hegel' by Richard Dien Winfield is finally here! It undermines the assault on truth per… https://t.co/ae2w59DCDR

    - 05:28:26 on 01/04/2022
  • Out now: 'Gender, Sexuality and Feminism in Pakistani Urdu Writing' by Amina Yaqin. This book sets out an unconvent… https://t.co/Mt59YdJfbG

    - 05:28:26 on 01/04/2022
  • Tune-in to a discussion with Markos Kounalakis on his latest book, 'Freedom Isn't Free' moderated by Bill Whalen.… https://t.co/IxQg3aSR3E

    - 05:28:26 on 01/04/2022
  • Out now! 'Sounding Prose' by Natascha Veldhorst. This book is about the presence of music in novels. More specifica… https://t.co/qYdKWGTaIb

    - 05:28:26 on 31/03/2022
  • 'Logos and Life' by Roger Teichmann is finally here! The essays cover topics in philosophy of mind, philosophy of… https://t.co/0Rl1Rgdgp4

    - 05:28:26 on 30/03/2022
  • 'The Whole Durn Human Comedy' by Joseph McBride is finally here! This is a groundbreaking, incisive critical study… https://t.co/gy4cLTpRaG

    - 05:28:26 on 23/03/2022
  • Out now! 'Emerging Thoughts in Disability and Humanness' by Elizabeth DePoy & Stephen French Gilson. Find out more… https://t.co/sYvBWYTLlU

    - 05:28:26 on 23/03/2022

Comodo SSL