slides that can be used for teaching this book are available on the book’shomepage: http://www.financial-economics.de.The book has three parts: the foundations part consists of this introductionand a chapter on decision theory. The second part on financial markets buildsa sophisticated model of financial markets step by step and is also the core ofthis book. Finally, the third part presents advanced topics that sketch someof the connections between financial economics and other fields in finance. Inthe first two parts, every chapter is accompanied by a number of exercisesand tests (solutions can be found in the appendix). Tests are included inorder to enable self-studying and as an assessment of the progress made in achapter. Exercises are meant to deepen the understanding by working withthe presented material.
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