The book is structured to move from certain to uncertain environments, using microeconomic foundations to explain asset pricing.

For an even broader perspective on financial models and asset allocation, you may also consider exploring the Encyclopedia of Financial Models by Fabozzi .

The discipline relies on models that quantify risk and predict asset returns. These include the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT). These models form the mathematical backbone of modern portfolio selection. Market Efficiency