Financial Economics

Rating:
Summary: Very good introductory text
Review: This is definitely for upper undergraduates or introductory graduates. Although concise, this book covers key topics that are essential for financial economics. This book is not a typical book used in finance; it is based on economics perspectives and hence considers equilibrium allocations among agents. It starts with the basic probability theory and property of von Neumann utility function, and then considers the role of various financial institutions in exploring allocations under both symmetric and asymmetric information. Many refer to the LeRoy and Werner book, but for me this book appears a much better introductory text because it provides a holistic view of the discipline in an organized way.