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Excursion to Financial Economics: A Radically Elementary Approach to the Fundamental Theorems of Asset Pricing

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Part of the Lecture Notes in Mathematics book series (LNM,volume 2067)

Abstract

What follows in this excursion is the attempt to construct a radically elementary version of continuous-time financial economics. Mathematicians sometimes confuse financial economics with mathematical finance (also known as financial mathematics) or even financial engineering. There is however, a profound difference in interest and methodology between the two: While mathematical finance and financial engineering are concerned with technical mathematical problems arising from the analysis of quantitative models of financial markets (in particular, models used at financial institutions), financial economics is a subdiscipline of economic theory and has a conceptual interest in understanding how financial markets work.

Keywords

  • Financial Market
  • Asset Price
  • Risky Asset
  • Financial Engineering
  • Elementary Version

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Herzberg, F.S. (2013). Excursion to Financial Economics: A Radically Elementary Approach to the Fundamental Theorems of Asset Pricing. In: Stochastic Calculus with Infinitesimals. Lecture Notes in Mathematics, vol 2067. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-33149-7_5

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