Neoclassical Finance provides a concise and powerful account of the underlying principles of modern finance, drawing on a generation of theoretical and empirical advances in the field. Stephen Ross developed the no arbitrage principle, tying asset pricing to the simple proposition that there are no free lunches in financial markets, and jointly with John Cox he developed the related concept of risk neutral pricing. In this book Ross makes a strong case that these concepts are the fundamental pillars of modern finance and, in particular, of market efficiency. In an efficient market prices reflect the information possessed by the market, and, as a consequence, trading schemes using commonly available information to beat the market are doomed to fail. By stark contrast, the currently popular stance offered by behavioral finance, fueled by a number of apparent anomalies in the financial markets, regards market prices as subject to the psychological whims of investors. But without any appeal to psychology, Ross shows that neoclassical theory provides a simple and rich explanation that resolves many of the anomalies on which behavioral finance has been fixated. Based on the inaugural Princeton Lectures in Finance, sponsored by the Bendheim Center for Finance of Princeton University, this elegant book represents a major contribution to the ongoing debate on market efficiency, and serves as a useful primer on the fundamentals of finance for both scholars and practitioners.

Stephen A. Ross博士，目前在麻省理工學院的史龍管理學院擔任財務經濟學的教授。Ross教授在有關財務及經濟的領域中，是著作最多的人之一。他在發利訂價理論(APT)上的努力倍受推崇。不只如此，他對公司行為的信號效果、代理理論、選擇權定價、利率結構說等的研究結果，更加肯定了他在其他學門上的眾多貢獻。他曾擔任過美國金融協會(American Finance Association)的總裁，最近更成為數本學術性及實務性期刊的聯合編輯。Ross教授同時也擔任加州理工學院的理事及大學退休權益基金會(CREF)的董事，除此之外，他也是Roll and Ross資產管理公司的主席。