Next class, we'll finish up the CAPM, then do some basic theory in the more modern approach to asset pricing---stochastic discount factors, state prices, and risk neutral probabilities. The first chapter of Stephen Ross's Neoclassical Finance treats some of these ideas. You can find a PDF of it here:  http://press.princeton.edu/chapters/s7834.pdf . It doesn't cover everything we're going to talk about, but it does cover the Fundamental Theorem of Finance, which will be a big part of Wednesday's lecture.