Research during 1989–2017 consolidated a model-based view of asset pricing that emphasizes dynamic volatility and the role of multiple risk factors. The period witnessed rapid advances in stochastic volatility, jump-diffusion, and other generalized option pricing models, paired with systematic comparisons that highlighted the value of integrating several factors beyond the traditional CAPM. Methodological emphasis centered on calibration, simulation, and empirical validation of how volatility regimes and macroeconomic states influence asset prices, risk management, and hedging practices.