<b></b> <b>Theory of Asset Pricing</b> unifies the central tenets and techniques of asset valuation into a single, comprehensive resource that is ideal for the first PhD course in asset pricing. <br> <br> <b></b> <b>Single-Period Portfolio Choice and Asset Pricing:</b> Expected Utility and Risk Aversion; Mean-Variance Analysis; CAPM, Arbitrage, and Linear Factor Models; Consumption-Savings and State Pricing; <b>Multiperiod Consumption, Portfolio Choice, and Asset Pricing: </b>A Multiperiod Discrete Time Model of Consupmtion; Multiperiod Market Equilibrium; <b>Contingent Claims Pricing: </b>Basics of Derivative Pricing; Essentials of Diffusion Processes and Itô's Lemma; Dynamic Hedging and PDE Valuation; Arbitrage, Martingales, Pricing Kernels; Mixing Diffusion and Jump Processes; <b>Asset Pricing in Continuous Time: </b>Continuous-Time Consumption and Portfolio Choice; Equilibrium Asset Returns; Time-Inseparable Utility; <b>Additional Topics in Asset Pricing: </b>Behavioral Finance and Asset Pricing; Asset Pricing with Differential Information; Models of the Term Structure of Interest Rates; Models of Default Risk.<br> <br> <b>MESSAGE:</b> For all readers interested in asset valuation.