A supplement for junior/senior and graduate level courses in Investments, Behavioral Finance Theory, and related courses. Teach the concepts that expose the inefficiency of capital markets. The New Finance is a comprehensive and organized collection of evidence and arguments that develop a persuasive case for an inefficient, complex and, at times, nearly chaotic stock market. This brief text also shows students how the complexity and uniqueness of investor interactions have important market pricing consequences. The fourth edition includes two new chapters on the real determinants of expected stock returns and the nature of stock volatility that the Financial Crisis of 2008 has exposed.
Table of Contents
Preface Chapter 1 -- Search for the Grail Chapter 2 -- The Old Finance Chapter 3 -- How Long is the Short Run? Chapter 4 -- The Ancient Finance Chapter 5 -- The Past and the Future Chapter 6 -- The Race Between Value and Growth Chapter 7 -- Surprise or Risk Premium? Chapter 8 -- "Bearing" Risk in the Stock Market Chapter 9 -- The Holy Grail Chapter 10 -- The Real Determinants of Expected Stock Returns Chapter 11 -- Dangerous Conversation Chapter 12 -- Rational Finance, Behavioral Finance, and the New Finance Chapter 13 -- Final Words