Danthine (U. of Lausanne, Switzerland) and Donaldson (Columbia U., USA) present a textbook on financial theory intended for masters level students with a professional orientation, a quantitative background, and a preliminary education in business and finance. Chapters cover measuring risk and risk aversion, the capital asset pricing model, Arrow-Debreu pricing, options and market completeness, the Martingale measure in discrete time, the consumption capital asset pricing model, the arbitrage pricing theory, financial structure and firm valuation in incomplete markets, and financial equilibrium with differential information. Annotation c. Book News, Inc., Portland, OR (booknews.com)
Intermediate Financial Theory is intended primarily for students seeking a master's degree and advanced MBAs taking a course in finance. This text is for those who find the doctoral texts excessively abstract and introductory texts too elementary.