- Buy this product and stream 90 days of Amazon Music Unlimited for free. E-mail after purchase. Conditions apply. Learn more
The Inefficient Stock Market: What Pays Off and Why Paperback – 30 Oct 1998
|New from||Used from|
- Choose from over 13,000 locations across the UK
- Prime members get unlimited deliveries at no additional cost
- Find your preferred location and add it to your address book
- Dispatch to this address when you check out
There is a newer edition of this item:
Special offers and product promotions
Customers who bought this item also bought
Customers also shopped for
Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Would you like to tell us about a lower price?
If you are a seller for this product, would you like to suggest updates through seller support?
Sparked with wry wit and humor, 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 cannot be explained by models based on rational economic behavior. Intended for Financial Markets and Institutions, and Money and Capitals Markets courses at the undergraduate level. *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. *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 a high return. *Looks into such areas as the payoffs to risk liability, profitability, and a stock's performance in past periods.
Related items to consider
There was a problem filtering reviews right now. Please try again later.
More thorough and technical information can be found in other books such as QEPM by Chincarini and Kim for example which I highly recommend.
- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market
Most helpful customer reviews on Amazon.com
They totally bombed. As far as I can tell, the reason for this is that the "super stock" model has a propensity to buy a lot of distressed assets (FreeSeas, for instance, was one of its top-ten favorites.)
This book is definitely geared towards the layman. There are times when he spends a lot of time explaining in words what could be written as a simple matrix equation. The issue is that it seems to me that any layman who took the time to recreate his factor model would be very disappointed. It's entirely likely that the market is inefficient. Unfortunately, it may be the case that the particular ways that the market is inefficient today simply aren't knowable, or that the market has now priced in his factor model. Whatever the case may be, if you're looking for a winning trading model as a layman, it's not here. If you're looking for a mathematical basis of understanding the inefficiencies in the stock market, that's not here either. I'm not sure that there exists a group of people for whom I would recommend this book.
At the very least, if Haugen seriously believes that his model is valuable, the next edition of this book should include some software component to help the reader pick out and use his factor model so that they may more easily verify it for themselves.
2/5. Cannot recommend.
I have been a non-financial scientific and technical analyst for a company doing business primarily with the defense department for over twenty years and found the analysis techniques presented in the book to be completely rational and apparently based on a very sound statistical approach.
This is the most refreshing approach to reality investing I have yet read. I intend to read the other two books in the trilogy.
If you want to break out of the Modern Portfolio Theory mold, read it.
The material is demanding but is understandable by the intelligent layperson, and is leavened by a very entertaining wit as Haugen does battle with the efficient market theorists.