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Somewhat disorganized (at the moment)


I have various other chapters (e.g., on empirical capital structure in the U.S., governance, international finance, and options), but they are not yet well formatted. Use at your own risk: companion 2020.


An old writeup. Still the right way to teach the wrong model (the CAPM). Never fully developed. Maybe inspirational to some...

Your Own E-Quizzes

If you have a set of quizzes with multiple choice or numerical answers that you designed yourself and that you would like to be coded into an online platform and that you would be happy to share with other instructors, we will code them for you into

For instructor flexibility sake, important chapters like options and derivatives, international finance, corporate governance, etc., will be available in the same pdf format, but not in the printed version. The companion is not updated, much less edited or organized. It has appendixes for a number of chapters (3,5,8,9,12,13,17,18,21); and chapters on [22] capital structure changes; [23] empirical capital structure patterns; [24] investment banks and M&A; [25] corporate governance; and [26] international finance; and [27] Options and Risk Management.

Please leave a non-anonymous review . (You will have to authenticate with a google account.)

Ivo Welch, UCLA, 2022-.

Fourth Edition, 2017 . (Please don't use this any longer!)
MFE Edition, 2017 for Masters of Finance or Masters of Data Sciences Programs, with extra programming and data resources, 2017.

(There is visual and audio multi-media content, with This will include some humourous videos, like the ones linked below, as well as a podcast version of some chapter [to see if there is interest]. The Book Cover for the 5th edition.)

You can also leave a non-anonymous review. (You will have to authenticate with a google account.)

The pdf version that you can download below has a gray watermark image (that the printed version on Amazon does not). This is deliberate and will not change. It is a (very small) incentive in favor of the printed version.


The book should have so few errata that we can list them here.

  1. None Yet

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