Financial Valuation and Econometrics

Writing for advanced undergraduate or beginning graduate students of finance, Lim (Singapore Management U.) introduces financial valuation and financial data analysis using econometric methods. There are plenty of books on each of the three areas, he says, but his innovation is to explain methods in basic econometrics, particularly linear regression analysis, and weave them into threads of foundational finance theory, concepts, ideas, and models. Typically pairing a technique with a sample application, he discusses such topics as two-variable linear regression: financial hedging, random walk: market efficiency, errors-in-variable: exchange rates and risk premium, and generalized methods of moments: consumption-based asset pricing. Annotation c2011 Book News, Inc., Portland, OR (booknews.com)