From the field’s leading authority, Financial Decisions and Markets: A Course in Asset Pricing offers a broad graduate-level overview of asset pricing. Authored by John Y. Campbell, one of the most respected authorities in the field, this comprehensive textbook introduces students to leading theories of portfolio choice and their implications for asset prices. It delves into empirical patterns of risk and return in financial markets, emphasizing the interplay between theory and evidence.

Starting with a careful introduction to single-period models, the book develops multiperiod models with time-varying discount rates. Campbell reviews the leading approaches to consumption-based asset pricing and integrates the study of equities and fixed-income securities. He discusses models with heterogeneous agents who use financial markets to share their risks but may also speculate against one another based on different beliefs or private information.

The book takes a broad view, linking asset pricing to related areas such as financial econometrics, household finance, and macroeconomics. Throughout, the textbook works in discrete time without requiring stochastic calculus, making it accessible while still providing depth. Each chapter ends with problems designed to challenge students and enhance their understanding of the main issues in financial economics.

As the most comprehensive and balanced textbook on asset pricing available, Financial Decisions and Markets: A Course in Asset Pricing is an essential resource for advanced-level courses in finance and economics. It provides a thorough exploration of theories, models, and empirical patterns, making it invaluable for students seeking to deepen their knowledge in the field.

Publisher: Princeton University Press
Edition: [Unspecified]
Language: English
Dimensions: 7 x 1 x 10 inches
ISBN-10: 691160805
ISBN-13: 978-0691160801
Publication Date: October 31, 2017
Print Length: 480 pages

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