Financial econometrics is a great success story in economics. Econometrics uses data and statistical inference methods, together with structural and descriptive modeling, to address rigorous economic problems. Its development within the world of finance is quite recent and has been paralleled by...

By providing a solid theoretical basis, this textbook introduces modern finance to readers, including students in science and technology, who already have a good foundation in quantitative skills. It combines the classical, decision oriented approach and the traditional organization of corporate...