3 Review(s)

Sparked with wry wit and humor that is sure to capture and sustain the interest of students, this clever and insightful text provides clear and undeniable evidence that the stock market is, in the author's view, inefficient - and that important aspects of market behavior can not be explained by models based on rational economic behavior. Salient Features Tackles important issues in today's financial market in a highly conversational and entertaining manner that will appeal to most students, with relatively short, “punchy” paragraphs that entice readers to go on. Provides clear explanations of the CAPM and the APT. Discusses risk and expected return factor models. Analyzes the characteristics of individual stocks that are associated with high returns. Predicts international stock returns. Considers why cheap, profitable, and low risk stocks tend to produce high returns. Helps students learn how to measure the payoffs to stock characteristics (factors). Looks into such areas as the payoffs to risk liquidity, profitability, and a stock's performance in past periods. Takes readers into the land of “Super Stocks” - companies in a portfolio that are, on average, big, liquid, and well-known.