The Inefficient Stock Market: What Pays Off and Why

About this book

Sparked with wry wit and humor this clever and insightful text provides clear and undeniable evidence that the stock market is in the authors 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 todays 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 stocks performance in past periods.