The company is about $1.3 billion through a $2 billion authorization, suggesting stock buybacks will continue into 2023. This is a fair valuation for the stock based on historical norms, as it rarely trades below 40 and has traded above…

The first two parts of the book explain portfolio choice and asset pricing theory in single‐period, discrete‐time, and continuous‐time models. For valuation, the focus throughout is on stochastic discount factors and their properties. Traditional factor models, including the CAPM, are…