Foundations for financial economics

by Chi-fu Huang

Based on formal derivations of financial theory, this volume provides a rigorous exploration of individual's consumption and portfolio decisions under uncertainty. Features in-depth coverage of such topics concepts of risk aversion and stochastic dominance; mathematical properties of a portfolio frontier; distributional conditions for mutual fund separation; capital asset pricing models and arbitrage pricing models; general pricing rules for securities that pay off in more than one state of nature; the pricing of options; rational expectation models of risky asset prices; signaling models; how multiperiod dynamic economies can be modeled; a multiperiod economy with emphasis on valuation by arbitrage; econometric issues associated with testing capital asset pricing models. For readers interested in a rigorous overview of financial economicsn individual consumption point of view. 1988

Genres: Finance

Hardcover

First published January 1, 1988

About the author

Dr. Chi-fu Huang (黄奇辅; born 1955) is a private investor, a retired hedge fund manager, and a former finance academic.

He has made major contributions to the theory of financial economics, writing on dynamic general equilibrium theory, intertemporal utility theory, and the theory of individual consumption and portfolio decisions.

Dr. Huang received his B.A. in Economics from National Taiwan University in 1977 and a Ph.D. in Financial Economics from Stanford Massachusetts Institute of Technology from 1983 to 1994.

Reviews

[Zichang · Rating 3 out of 5]

textbook in Financial Economics class. I think it is pretty good and comprehensive compared with my micro economics study. Rigorous proof and necessary graph. It seems like analysis in math.
But one of annoying things is incomplete proof in somewhere and you have to figure it out by yourself or look it up in another book.
I'd like to give 3.5 picks.

[Tero Lakkala · Rating 2 out of 5]

A fairly concise treatment of (rather classic) financial theory. Lots of typos.