| Part | Title | Key Topics | |------|-------|-------------| | I | Finance in a Certainty Environment | Time value of money, simple and compound interest, capital budgeting under certainty | | II | Finance in an Uncertainty Environment | Expected utility theory, mean-variance portfolio choice (Markowitz), stochastic dominance | | III | Asset Pricing Theories | CAPM, Arbitrage Pricing Theory (APT), Factor Models (Fama-French), Consumption-based CAPM | | IV | Derivatives & Contingent Claims | Option pricing (Black-Scholes), binomial trees, futures, swaps, and real options |

Obtain the latest edition (3rd or 4th) via your university library’s e-reserve rather than downloading from PDF repositories, ensuring you have complete appendices and correct numerical examples. If you need a specific chapter summary, problem solution, or comparison with another Fabozzi book (e.g., "Foundations of Financial Markets"), please clarify.

1. Introduction Frank J. Fabozzi is a towering figure in financial economics, known for bridging theoretical finance with institutional practice. His textbook, Financial Economics (often co-authored with Edwin H. Neave and Guofu Zhou), is a rigorous introduction to the microeconomic foundations of financial markets. Unlike purely investment-oriented texts, this work emphasizes neoclassical pricing theories , utility maximization , and general equilibrium .