PREFACE

There are many excellent finance textbooks for undergraduate and MBA courses. However, to us those textbooks could benefit from offering more economic reasoning and from showing how that reasoning derives from theoretical models. On the other hand, books at the doctoral level can be too detailed and unnecessarily complex. Hence, this textbook attempts to fill a gap by providing rigorous coverage aimed at assisting undergraduate and master's level students to understand better the principles and practical application of financial economic theory. In addition, the book can serve as a supplemental reference for doctoral students in economics and finance, as well as for practitioners who are interested in knowing more about the theory and intui....