"Intermediate Financial Theory, Second Rdition is an excellent book that introduces financial asset pricing theory as a natural extension of microeconomic and general equilibrium theory. The exposition of classic and recent results is clear, thorough and accessible to any economist or graduate student who has a good grounding in microeconomic theory. Having mastered this material the reader is well equipped to tackle the many variations of asset pricing models in the literature." -Frank Milne, Professor of Rconomics and Finance, Queens University, Ontario, Canada

　　"Intermediat Financial Theory, Second Edtion is ideally suited to students wishing to gain a deeper understanding of the basic concepts of financial economics beyond those presented in a typical MBA program without having to deal with unnecessary mathematical details. The exposition is superb and sure to greatly enrich the readers knowledge of the subject. The book, written by two of the pro-fessions leading experts, is unique." -Rajnish Mehra, Professor of Finance, University of California, Santa Barbara, USA

　　Jean-Pierre Danthine

　　John Donaldson

PART I: INTRODUCTION
1. On the Role of Financial Markets and Institutions
2. The Challenges of Asset Pricing: A Roadmap

PART II: THE DEMAND FOR FINANCIAL ASSETS
3. Making Choices in Risky Situations
4. Measuring Risk and Risk Aversion
5. Risk Aversion and Investment Decisions, Part I
6. Risk Aversion and Investment Decisions, Part II: Modern Portfolio Theory

PART III: EQUILIBRIUM PRICING
7. The Capital Asset Pricing Model: Another View about Risk
8. Arrow-Debreu Pricing I
9. The Consumption Capital Asset Pricing Model (CCAPM)

PART IV: ARBITRAGE PRICING
10. Arrow-Debreu Pricing II: the Arbitrage Perspective
11. The Martingale Measure : Part I
12. The Martingale Measure : Part II
13. The Arbitrage Pricing Theory (APT)

PART V: EXTENSIONS
14. Portfolio Management in the long run
15. Financial Structure and Firm Valuation in Incomplete Markets
16. Financial Equilibrium with Differential Information

EXERCISES