Asset Pricing and Portfolio Choice Theory

In <em>Asset Pricing and Portfolio Choice Theory</em> Kerry E. Back at last offers what is at once a welcoming introduction to and a comprehensive overview of asset pricing. Useful as a textbook for graduate students in finance with extensive exercises and a solutions manual available for professors the book will also serve as an essential reference for scholars and professionals as it includes detailed proofs and calculations as section appendices. <p/>Topics covered include the classical results on single-period discrete-time and continuous-time models as well as various proposed explanations for the equity premium and risk-free rate puzzles and chapters on heterogeneous beliefs asymmetric information non-expected utility preferences and production models. The book includes numerous exercises designed to provide practice with the concepts and to introduce additional results. Each chapter concludes with a notes and references section that supplies pathways to additional developments in the field.<br>