Introduction to the economics of financial markets / James Bradfield.

Format:

Book

Author/Creator:

Bradfield, James, author.

Series:

Oxford scholarship online.

Oxford scholarship online

Language:

English

Subjects (All):

Finance.

Capital market.

Physical Description:

1 online resource (508 p.)

Place of Publication:

Oxford : Oxford University Press, 2023.

Language Note:

English

Summary:

Part I: Introduction. 1. The Economics of Financial Markets. 2. Financial Markets and Economic Efficiency. Part II: Intertemporal Allocation by Consumers and Firms When Future Payments are Certain. 3. The Fundamental Economics of Intertemporal Allocation. 4. The Fisher Diagram for Optimal Intertemporal Allocation. 5. Maximizing lifetime utility in a firm with many shareholders. 6. A Transition to Models in which Future Outcomes Are Uncertain. Part III: Rates of Return as Random Variables. 7. Probabilistic Models. Part IV: Portfolio Theory and Capital Asset Pricing Theory. 8. Portfolio Theory.

Contents:

Contents; Part I: Introduction; 1 The Economics of Financial Markets; 1.1 The Economic Function of a Financial Market; 1.2 The Intended Readers for This Book; 1.3 Three Kinds of Trade-Offs; 1.4 Mutually Beneficial Intertemporal Exchanges; 1.5 Economic Efficiency and Mutually Beneficial Exchanges; 1.6 Examples of Market Failures; 1.7 Issues in Public Policy; 1.8 The Plan of the Book; Problems; Notes; 2 Financial Markets and Economic Efficiency; 2.1 Financial Securities; 2.2 Transaction Costs; 2.3 Liquidity; 2.4 The Problem of Asymmetric Information; 2.5 The Problem of Agency

2.6 Financial Markets and Informational Efficiency Problems; Notes; Part II: Intertemporal Allocation by Consumers and Firms When Future Payments Are Certain; 3 The Fundamental Economics of Intertemporal Allocation; 3.1 The Plan of the Chapter; 3.2 A Primitive Economy with No Trading; 3.3 A Primitive Economy with Trading, but with No Markets; 3.4 The Assumption That Future Payments Are Known with Certainty Today; 3.5 Abstracting from Firms; 3.6 The Distinction between Income and Wealth; 3.7 Income, Wealth, and Present Values; Problems; Notes

4 The Fisher Diagram for Optimal Intertemporal Allocation4.1 The Intertemporal Budget Line; 4.2 Intertemporal Indifference Curves; 4.3 Allocating Wealth to Maximize Intertemporal Utility; 4.4 Mutually Beneficial Exchanges; 4.5 The Efficient Level of Investment; 4.6 The Importance of Informational Efficiency in the Prices of Financial Securities; Notes; 5 Maximizing Lifetime Utility in a Firm with Many Shareholders; 5.1 The Plan of the Chapter; 5.2 A Firm with Many Shareholders; 5.3 A Profitable Investment Project; 5.4 Financing the New Project; 5.5 Conclusion; Problems; Notes

6 A Transition to Models in Which Future Outcomes Are Uncertain 6.1 A Brief Review and the Plan of the Chapter; 6.2 Risk and Risk Aversion; 6.3 A Synopsis of Modern Portfolio Theory; 6.4 A Model of a Firm Whose Future Earnings Are Uncertain: Two Adjacent Farms; 6.5 Mutually Beneficial Exchanges: A Contractual Claim and a Residual Claim; 6.6 The Equilibrium Prices of the Bond and the Stock; 6.7 Conclusion; Problems; Notes; Part III: Rates of Return as Random Variables; 7 Probabilistic Models; 7.1 The Objectives of Using Probabilistic Models; 7.2 Rates of Return and Prices

7.3 Rates of Return as Random Variables 7.4 Normal Probability Distributions; 7.5 A Joint Probability Distribution for Two Discrete Random Variables; 7.6 A Summary Thus Far; 7.7 The Effect of the Price of a Security on the Expected Value of Its Rate of Return; 7.8 The Effect of the Price of a Security on the Standard Deviation of Its Rate of Return; 7.9 A Linear Model of the Rate of Return; 7.10 Regression Lines and Characteristic Lines; 7.11 The Parameter β[sub(i)] as the Quantity of Risk in Security i; 7.12 Correlation; 7.13 Summary; Problems; Notes

Part IV: Portfolio Theory and Capital Asset Pricing Theory

Notes:

Previously issued in print: 2007.

Includes bibliographical references and index.

Derived record based on print version record and publisher information.

Description based on publisher supplied metadata and other sources.

ISBN:

0-19-771036-0

0-19-988594-X

1-281-16361-9

9786611163617

0-19-804244-2

1-4294-9117-5

OCLC:

476242488