Financial Decisions and Markets - A Course in Asset Pricing

From the field''s leading authority, the most authoritative and comprehensive advanced-level textbook on asset pricing

In Financial Decisions and Markets, John Campbell, one of the field-s most respected authorities, provides a broad graduate-level overview of asset pricing. He introduces students to leading theories of portfolio choice, their implications for asset prices, and empirical patterns of risk and return in financial markets. Campbell emphasizes the interplay of theory and evidence, as theorists respond to empirical puzzles by developing models with new testable implications. The book shows how models make predictions not only about asset prices but also about investors- financial positions, and how they often draw on insights from behavioral economics.


After a careful introduction to single-period models, Campbell develops multiperiod models with time-varying discount rates, reviews the leading approaches to consumption-based asset pricing