ACKNOWLEDGMENTS

The idea for this book was proposed to us by George Lobell, former acquisitions editor of Blackwell. George argued the need for a book that focused on the principles of financial economics, fully using the mathematical and statistical training that economics students now acquire, and at the same time assisting those students with the practicalities of applying their economics training. George was especially keen on providing the students both with unusual intellectual challenges and with exciting new research results. We have attempted to achieve those goals.

George handed the reins to Lacey Vitetta, the acquisitions editor at Wiley who guided us to the completion of this project. Along the way she obtained helpful comments from the following reviewers:

Turan G. Bali, Baruch College

Gerard Caprio, Williams College

Martin Cherkes, Columbia University

Ahmet Duran, University of Michigan-Ann Arbor

Brian Henderson, George Washington University

Thomas Jeitschko, Michigan State University

Alexander Koch, Royal Holloway, University of London

Lenny Kostovetsky, University of Rochester

Alex Michaelides, London School of Economics

Andrew Samwick, Dartmouth College

Emanuela Sciubba, Birkbeck University of London

Koray D. Simsek, Sabanci University, Turkey

Anne Villamil, University of Illinois at Urbana-Champaign

Brian Wright, The University of Nottingham, China

There are end-of-chapter questions for each chapter. For a good number of chapters, these questions were prepared by graduate students who also provided the solutions, which appear in the book's Solutions Manual. In addition, the students provided us with helpful feedback and suggestions for improving the exposition in the chapters. These students and the chapters that they worked on are listed below:

Faye (Fei) Wu (New York University): Chapters 1–5

Peter Kelly (Yale): Chapters 7 and 8

Li Cai (University of Massachusetts): Chapters 9 and 12

Chen Chang (New York University): Chapters 10 and 11

Dashan Huang (Washington University at St. Louis): Chapters 13–16

Chao Guo (New York University): Chapters 17 and 18

Taym Moustapha (New York University): Chapters 20 and 21

Jian Du (University of Massachusetts): Chapters 22–24

Li (Luke) Tian (New York University): Chapters 25 and 26

We are grateful to Pamela P. Drake, Gray Ferguson Professor of Finance and Department Head at James Madison University, for allowing us to use the illustrations in Chapter 26 from her joint work with one of the authors and for coauthoring several of the web-appendices. We also thank Sergio M. Focardi, Professor of Finance at EDHEC Business School, for coauthoring Web-Appendix O.

Some of the earlier results presented in this book represent extracts from Edwin H. Neave and John C. Wiginton, Financial Management: Theory and Strategies published in 1982 by Prentice Hall. We are grateful to Prentice Hall and to John C. Wiginton for transferring their copyrights of the book to one of the present book's coauthors.

Frank J. Fabozzi, New Hope, Pennsylvania

Edwin H. Neave, Kingston, Ontario

Guofu Zhou, St. Louis, Missouri

June 2011