• book

From the Publisher

Financial Economics: A Simple Introduction offers an accessible guide to the central ideas and methods of financial economics, with examples and calculations, empirical evidence, and over 20 diagrams to support the analysis.

Understand consumption and investment decisions, intertemporal choice, indifference curves and the marginal rate of substitution, production possibilities and the marginal rate of transformation, rates of return, the financial market line, borrowing and lending, and the Fisher Separation Theorem.

Portfolio theory examines expected returns, standard deviation and variance risk, covariance, correlation, asset diversification, market portfolio, a risk-free asset, the capital market line, and the Tobin Separation Theorem.

The capital asset pricing model (CAPM) explores diversifiable and non-diversifiable risk, the beta risk factor, calculation of an asset’s expected return, the security market line, asset evaluation, and empirical evidence on the CAPM.

Market efficiency looks at the efficient market hypothesis (EMH), weak, semi-strong, and strong form efficiency, and the literature on technical and fundamental analysis strategies to beat the market.

Published: K.H. Erickson on
ISBN: 9781311571991
List price: $6.99
Read on Scribd mobile: iPhone, iPad and Android.
Availability for Financial Economics: A Simple Introduction
With a 30 day free trial you can read online for free
  1. This book can be read on up to 6 mobile devices.

Related Articles

Money
1 min read

Charles Ellis Convinced Us to Index

FOR INVESTORS, 2016 was the year of the index fund. Some $175 billion was yanked from actively managed funds, while $326 billion was stashed in passive ones. This shift came about in large part because of the ideas of investment consultant and author Charles Ellis—whose new book, The Index Revolution, tidily sums up the case he’s been making for decades. Back in 1975, Ellis wrote an article arguing that investors would come out ahead by simply avoiding mistakes rather than seeking to beat the market. Forty years of data have proved him to be prophetic. Ellis isn’t as famous as indexing champ
Money
2 min read

Ask the Expert

INVESTING Q Is gold a good investment? —P.R., Baton Rouge A Gold’s fans advocate owning the yellow metal as a hedge against inflation and stock market disaster. But other investors, including Warren Buffett, believe it has no role in a modern portfolio. “Gold has no intrinsic value other than for jewelry and some industrial use, and it produces no income,” says Joe Heider, founder of Cirrus Wealth Management in Cleveland. Over the long term, he says, gold is no match for a diversified portfolio of stocks and bonds. Since 1986, the price of gold has increased by roughly 200%; in the same pe
Bloomberg Businessweek
4 min read
Politics

How To Trade A Donkey

Bloomberg News • From livestock to flowers, exchanges are popping up everywhere in China. So is speculation • “Spawned from needs in the real economy” Chances are, if you can buy it or sell it, China has an exchange for it. The latest example? The China Donkey Exchange. It’s one of more than 1,000 trading venues that now dot Asia’s largest economy, up from 300 in 2011, according to SunSirs, a provider of data and research on Chinese commodity markets. The country has everything from the national stock exchanges in Shanghai and Shenzhen to small operations that consist of little more than s