Contents

• Preface
• 1. Asset markets and asset prices
• 2. Asset market microstructure
• 3. Predictability of prices and market efficiency
• 4. Decision making under uncertainty
• 5. Portfolio selection: the mean-variance model
• 6. The capital asset pricing model, CAPM
• 7. Arbitrage
• 8. Factor models and arbitrage pricing theory, APT
• 9. Empirical appraisal of the CAPM
• 10. Present value relationships and price variability
• 11. Intertemporal choice and equity premium puzzle
• 12. Bond markets and fixed-interest securities
• 13. Term structure and interest rates
• 14. Futures markets - fundamentals
• 15. Futures markets - speculation and hedging
• 16. Futures markets - applications
• 17. Swap contracts and swap markets
• 18. Options markets - fundamentals
• 19. Options markets - price determination
• 20. Options markets - applications