Product Description

The second edition of this authoritative textbook continues the tradition of providing clear and concise descriptions of the new and classic concepts in financial theory. The authors keep the theory accessible by requiring very little mathematical background.

First edition published by Prentice-Hall in 2001- ISBN 0130174467.

The second edition includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor.

"This book does admirably what it sets out to do - provide a bridge between MBA-level finance texts and PhD-level texts....
many books claim to require little prior mathematical training, but this one actually does so.
This book may be a good one for Ph.D students outside finance who need some basic training in financial theory or for those looking for a more user-friendly introduction to advanced theory.
The exercises are very good."
--Ian Gow, Student, Graduate School of Business, Stanford University

*Completely updated edition of classic textbook that fills a gap between MBA level texts and PHD level texts
*Focuses on clear explanations of key concepts and requires limited mathematical prerequisites
*Online solutions manual available
* Updates includes new structure emphasizing the distinction between the equilibrium and the arbitrage perspectives on valuation and pricing, as well as a new chapter on asset management for the long term investor

Product Details

• Amazon Sales Rank: #189895 in Books
• Published on: 2005-08-02
• Released on: 2005-07-19
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 392 pages

Review
"This is an excellent book that introduces financial asset pricing theory as a natural extension of microeconomic and general equilibrium theory. The exposition of classic and recent results is clear, thorough and accessible to any economist or graduate student who has a good grounding in microeconomic theory. Having mastered this material the reader is well equipped to tackle the many variations of asset pricing models in the literature."
--Frank Milne, Queen's University, Professor of Economics and Finance

"This book is ideally suited to students wishing to gain a deeper understanding of the basic concepts of financial economics beyond those presented in a typical MBA program without having to deal with unnecessary mathematical details. The exposition is superb and enriching of intuition. The book, written by two of the professions leading experts, is unique."
-- Rajnish Mehra, Professor of Finance, University of California, Santa Barbara

From the Back Cover
Business/Finance

Intermediate Financial Theory, Second Edition

Jean-Pierre Danthine and John B. Donaldson

"Intermediate Financial Theory, Second Edition is an excellent book that introduces financial asset pricing theory as a natural extension of microeconomic and general equilibrium theory. The exposition of classic and recent results is clear, thorough and accessible to any economist or graduate student who has a good grounding in microeconomic theory. Having mastered this material the reader is well equipped to tackle the many variations of asset pricing models in the literature."
- Frank Milne, Professor of Economics and Finance, Queen's University, Ontario, Canada

"Intermediate Financial Theory, Second Edition is ideally suited to students wishing to gain a deeper understanding of the basic concepts of financial economics beyond those presented in a typical MBA program without having to deal with unnecessary mathematical details. The exposition is superb and sure to greatly enrich the reader's knowledge of the subject. The book, written by two of the profession's leading experts, is unique."
- Rajnish Mehra, Professor of Finance, University of California, Santa Barbara, USA

Intermediate Financial Theory, Second Edition continues the tradition of providing clear and concise descriptions of the new and classic concepts in financial theory. Professors Danthine and Donaldson keep the theory accessible by requiring very little mathematical background and instead focusing on clear explanations of key concepts.

Intermediate Financial Theory, Second Edition includes a new structure, emphasizing the distinction between the equilibrium and the arbitrage perspective on valuation and pricing, as well as a completely new chapter on asset management for the long-term investor.

Additional material to support teaching this book can be found at: http://www.hec.unil.ch/jdanthine/Text.htm

Jean-Pierre Danthine is Professor of Economics and Finance at the University of Lausanne, Switzerland, and Director of the International Center for Financial Asset Management and Engineering, Lausanne and Geneva, Switzerland.

John B. Donaldson is the Mario J. Gabelli Professor of Finance at Columbia Business School, New York, USA.

About the Author
Jean-Pierre Danthine is professor of economics and finance at the University of Lausanne Switzerland), director of the International Center for Financial Asset Management and Engineering Lausanne & Geneva) and CEPR Research Fellow. The holder of a Ph.D. in economics from Carnegie-Mellon University and a M.S. in Economics from the University of Louvain, Professor DanthineI previously taught at at Columbia University and held visiting appointments at CUNY Graduate Center, University of Southern California (Los Angeles), Université d'Aix-Marseille, Université Laval (Québec), as well as Universities of Toulon and Dijon. He is an Associate Editor of Macroeconomic Dynamics and Finance Research Letters; Chairman of the Scientific Council of the TCIP (Training Center for Investment Professionals); member of the Council of the European Economic Association, of the Scientific Councils of CEPREMAP (Paris), CREST (Paris), CREI (U. Pompeu Fabra, Barcelona) as well as the Fonds national de la recherche scientifique (Economics Commission - Belgium). He was also a member of the Executive Committee of the ICMB (Geneva). He was formerly Vice-Rector of the University of Lausanne, chairman of its Departement d'Econométrie et d'Economie Politique (DEEP) and director of its Institute for Banking and Financial Management, member of the Executive Committee of CEPR (Center for Economic Policy research - London), of the CEPS Macroeconomic Policy Group (Brussels), of the Scientific Council of the European Science Foundation Network in Financial Markets. He was also an Associate Editor of the European Economic Review, of the Journal of Empirical Finance and of the Revue Finance. His publications have appeared in Econometrica, the Journal of Political Economy, the Review of Economic Studies, the Journal of Finance, the Journal of Economic Theory, the Journal of Public Economics, the European Economic Review, and many other journals.

Customer Reviews

Accurate title for an excellent book
This book does admirably what it sets out to do - provide a bridge between MBA-level finance texts and PhD-level texts. While the mathematical prerequisites are relatively limited (comfort with matrices and Lagrangians), they may not be in the toolkit of most MBAs. (Note that many books claim to require little prior mathematical training, but this one actually does so.)

This book may be a good one for Ph.D students outside finance who need some basic training in financial theory or for those looking for a more user-friendly introduction to advanced theory.

The exercises are very good. There are some typographical errors but no more than typical for this kind of book.

Excelent book, there are opportunities to improvement.
This is the perfect book whether one is interested in understand asset pricing in an intermediate level. It includes all the important topics such as CAPM, CCAPM, APT avoiding unecessary math.
On the other hand, the second edition was not carefully reviews, and there are a lot of erros in the excercise section .

For a third edition, my recomendation is to include an additional chapter about efficient markets.

INTERMEDIATE FINANCIAL THEORY
I recommend this book for everyone who is studying finance or work on it. This is an excellent work paper to understand these matters. Furthermore it has a quite understandable language even for those which have some handicaps about this subject. This book was recommended to me from my Investment professor in a Finance Master Course and I found it a very good investment.