ASSET PRICING: A STRUCTURAL THEORY AND ITS APPLICATIONS

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ASSET PRICING: A STRUCTURAL THEORY AND ITS APPLICATIONS image
ISBN-10:

9812704558

ISBN-13:

9789812704559

Released: Apr 01, 2008
Format: Hardcover, 92 pages

Description:

Modern asset pricing models play a central role in finance and economic theory and applications. This book introduces a structural theory to evaluate these asset pricing models and throws light on the existence of Equity Premium Puzzle. Based on the structural theory, some algebraic (valuation-preserving) operations are developed in asset spaces and pricing kernel spaces. This has a very important implication leading to practical guidance in portfolio management and asset allocation in the global financial industry. The book also covers topics, such as the role of over-confidence in asset pricing modeling, relationship of the portfolio insurance with option and consumption-based asset pricing models, etc.

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