7.1 OVERVIEW

7.2 RISK-AVERSE INVESTORS: OVERVIEW

7.3 THE ST. PETERSBURG PARADOX

7.4 INVESTOR RISK PREFERENCES

7.5 THREE-FIRM CASE: INDIFFERENCE MAP

7.6 MARKET PRICE OF RISK

7.7 THE CAPM IN EQUILIBRIUM: OVERVIEW

7.8 EXPECTED UTILITY MAXIMIZATION

7.9 TWO-FUND THEOREM

7.10 RISK AVERSION AND THE MARKET PORTFOLIO

7.11 EMPIRICAL TESTS OF THE CAPM

7.12 EQUILIBRIUM VALUE OF THE FIRM: OVERVIEW

7.13 FIRM VALUE: A GENERAL EQUILIBRIUM DESCRIPTION

7.14 FIRM VALUE: A GENERAL EQUILIBRIUM CONSTRUCTION

7.15 THREE-FIRM CASE: A GENERAL EQUILIBRIUM ANALYSIS

7.16 CORPORATE FINANCE IMPLICATIONS: OVERVIEW

7.17 CAPITAL STRUCTURE IMPLICATIONS

7.18 EXAMPLE: RISK-FREE FIRM DEBT

7.19 RISK-ADJUSTED DISCOUNT RATES