A01=Stephen A. Ross
Actual Return
Arbitrage
Arrow's impossibility theorem
Asset
Asset management
Auction Market
Author_Stephen A. Ross
Behavioral economics
Bid-Ask Spread
Black Scholes Model
Calculation
Call option
Capital asset pricing model
Capital gain
Category=KC
Category=KFF
Closed-end fund
Consumer choice
Cumulative Return
Discounts and allowances
Dividend
Economic equilibrium
Efficient-market hypothesis
eq_bestseller
eq_business-finance-law
eq_isMigrated=1
eq_isMigrated=2
eq_nobargain
eq_non-fiction
Event study
Expectations hypothesis
Expenditure function
Factor price
Forward contract
Forward price
Futures exchange
Hedge (finance)
Incomplete markets
Information asymmetry
Investment
Investor
Law of one price
Local volatility
Long run and short run
Loss function
Management fee
Marginal utility
Market liquidity
Market portfolio
Market sentiment
Modigliani-Miller theorem
Money market fund
Money pump
No-trade theorem
Noise trader
Payout
Perfect Hedge
Pricing
Probability
Residual claimant
Risk aversion
Risk premium
Risk-Free Rate Of Return
Risk-neutral measure
Security market line
Share price
Spot market
Static analysis
Stock split
Supply (economics)
Supply and demand
Survivorship bias
Terminal value (finance)
Thinly Traded
Trading strategy
Underperform
Utility
Utility maximization problem
Wealth
Product details
- ISBN 9780691121383
- Weight: 312g
- Dimensions: 152 x 235mm
- Publication Date: 31 Oct 2004
- Publisher: Princeton University Press
- Publication City/Country: US
- Product Form: Hardback
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Neoclassical Finance provides a concise and powerful account of the underlying principles of modern finance, drawing on a generation of theoretical and empirical advances in the field. Stephen Ross developed the no arbitrage principle, tying asset pricing to the simple proposition that there are no free lunches in financial markets, and jointly with John Cox he developed the related concept of risk-neutral pricing. In this book Ross makes a strong case that these concepts are the fundamental pillars of modern finance and, in particular, of market efficiency. In an efficient market prices reflect the information possessed by the market and, as a consequence, trading schemes using commonly available information to beat the market are doomed to fail. By stark contrast, the currently popular stance offered by behavioral finance, fueled by a number of apparent anomalies in the financial markets, regards market prices as subject to the psychological whims of investors. But without any appeal to psychology, Ross shows that neoclassical theory provides a simple and rich explanation that resolves many of the anomalies on which behavioral finance has been fixated.
Based on the inaugural Princeton Lectures in Finance, sponsored by the Bendheim Center for Finance of Princeton University, this elegant book represents a major contribution to the ongoing debate on market efficiency, and serves as a useful primer on the fundamentals of finance for both scholars and practitioners.
Stephen A. Ross is the Franco Modigliani Professor of Finance and Economics at the Massachusetts Institute of Technology. Best known as the originator of arbitrage pricing theory and as the codiscoverer of risk-neutral pricing and the binomial model for pricing derivatives, he is the coauthor of the best-selling textbook series in finance, "Corporate Finance".
