Anotacija

The present note is prepared for a course in financial economics offered to master students. Whilst the course’s main curriculum, LeRoy and Werner (2001), describes the most common and the most popular approach in financial economics, uncertainty, then the present note – a part of the curriculum as well – is staunched to certainty, likely, the original and classical one in finance, although quite many would claim that approach is more than far from the real financial matters. But frankly, we took our first steps in finance inside the realm of certainty, didn’t we?