Introduction                                      1

•  1   A Brief History of Finance Theory                                   3
•  2  Two-Date Models: Complete Markets                       12
•  3  Incomplete Markets with Production                     27
•  4  Arbitrage and Asset-Pricing:lnduced-Preference Approach                        37
•  5  Martingale Pricing Methods                             50
•  6 RepresentativeConsumers                60
•  7  Diversification and Asset-Pricing                          70
•  8  Multiperiod Asset-Pricing: Complete Markets            78
•  9   General Asset-Pricing in Complete Markets                   89
• 10  MultiperiodAsset-Pricing:lncomplete Asset-Markets   100
• Conclusion                                                                                                    1 14

Bibliography                                                                                                    1 17
Index                                        123