Consumption-Based Model and Basic Pricing model Basic question to decide for an investor: (1) how much to save; (2)how much to consume; (3)what portfolio of assets to hold. Pricing equation come from the first order condition for this decision

Outline MM ean-variance analysis; ean-variance analysis and utility maximization; Does high moment matter?

Introduction Overview of investment styles; Empirical evidence on returns of small capitalization firms and value stocks; How to identify investment styles of a mutual fund Characteristic-based style analysis Return-based style analysis Style benchmarks

Fourth Edition Advantages of the Single Index Model Reduces the number of inputs for diversification. Portfolio of 50 assets 50 expected returns;50 variances 1225 covariance. too difficult a task

• 有益公共物品与有害公共物品 • 公益与公害的最优供给 • 有益和有害公共物品的定价 • 外部性

• 只有一个污染者时的庇古税 • 多个污染者时的情况：边际均等原则 • 征税与补贴 • 不充分的竞争

►污染管理政策的基本原理 ►污染管理的政治经济学含义 ►环境管理政策的主要模式 ►环境管理的复杂性 ►环境管理的主要问题

• 简介 • 是污染者享有污染权，还是受害者享有免遭污染的权利 • 科思定理 • 有害公共物品及其交易 • 团体内部的交易

• 效率的含义 • 效率与竞争性市场 • 供给、需求与效率 • 成本—收益分析

INVESTMENTS Two-Security Portfolio: Return rp =W+W2r2 W Proportion of funds in Security 1 W2 Proportion of funds in Security 2 =Expected return on Security 1