An Overview of Financial Economics

Definition of Financial Economics

Financial Economics, in simple terms, can be defined as the process of decision-making under moments of uncertainty when it is related to the financial context and thus involves the economics and financial modules, which in turn would call for the making of testable or what may be known as the policy implications, all of which are based on the assumptions made which can be considered as acceptable.

Textbooks on Financial Economics

Some of the basic textbooks on financial economics are as follows:

• Financial Economics, by Frank Fabozzi, Ted Neave, and Gaofu Zhou, 2012.
• Principles of Financial Economics by Stephen F. LeRoy, Jan Werner, Stephen A. Ross, 2000.

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