INEFFICIENT STOCK MARKET, THE

Haugen (finance, University of California-Irvine, emeritus) provides a theoretical perspective on investment success. He argues that factor models are more useful in predicting expected returns than in predicting risk, and offers an explanation as to why this would be the case. Chapters cover the theories of modern finance, ad hoc factor models, payoffs, the expected-return factor model, international results, the topography of the stock market, cheapness and profitability, risk, price history, and portfolio management. A glossary is provided; an index is not.