Essentials of financial economics a hands-On approach
- Switzerland Springer 2025
- xxi, 243p.
- Springer Texts in Business and Economics .
Front Matter Pages i-xxi Choice Under Uncertainty Michael Donadelli, Michele Costola, Ivan Gufler Pages 1-20 Modern Portfolio Theory Michael Donadelli, Michele Costola, Ivan Gufler Pages 21-71 The Capital Asset Pricing Model Michael Donadelli, Michele Costola, Ivan Gufler Pages 73-96 Empirical Analysis of the CAPM Michael Donadelli, Michele Costola, Ivan Gufler Pages 97-120 The Consumption CAPM Michael Donadelli, Michele Costola, Ivan Gufler Pages 121-157 Arbitrage Pricing Theory and Multifactor Models Michael Donadelli, Michele Costola, Ivan Gufler Pages 159-186 Empirical Cross-Sectional Asset Pricing Michael Donadelli, Michele Costola, Ivan Gufler Pages 187-202 The Black–Litterman Model Michael Donadelli, Michele Costola, Ivan Gufler Pages 203-222 Event-Study Analysis Michael Donadelli, Michele Costola, Ivan Gufler Pages 223-243
This textbook offers a comprehensive guide to key topics in financial economics, seamlessly blending theoretical insights with practical applications. It covers essential areas such as portfolio allocation, asset pricing, empirical finance, and behavioral finance, providing students with a solid conceptual foundation through a combination of theory and real-world examples.
Core topics include mean-variance portfolio theory, linear factor models for asset pricing, consumption-based asset pricing, the Black-Litterman asset allocation model, empirical cross-sectional asset pricing, and event studies. With a strong emphasis on hands-on implementation, the book integrates programming languages such as MATLAB, Python, Julia, and R, enabling students to apply financial models effectively.
The book begins with a concise and standard review of decision-making under uncertainty, gradually advancing to topics such as intertemporal consumption choices and their impact on asset prices, before concluding with empirical tools for capturing market sentiment. By bridging fundamental and advanced finance concepts, it equips students with the necessary tools to navigate the financial landscape. Theoretical models are presented with transparency, avoiding the "black box" issue by clearly explaining mathematical derivations. This structured approach enhances learning and empowers students to utilize the provided code for key financial tasks, including portfolio management, risk analysis, and market sentiment analysis. (https://link.springer.com/book/10.1007/978-3-031-86189-5)