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The New Finance

Autor Robert A. Haugen
en Limba Engleză Mixed media product – 21 apr 2009
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.
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Specificații

ISBN-13: 9780136036043
ISBN-10: 013603604X
Pagini: 160
Dimensiuni: 187 x 232 mm
Greutate: 0.28 kg
Ediția:4Nouă
Editura: Pearson Education
Colecția Prentice Hall
Locul publicării:Upper Saddle River, United States

Cuprins

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

Caracteristici

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.
 
Engaging Topic Matter and Revolutionary Concepts–
  • NEW Chapter 11–Dangerous Conversation: Modern Finance contends that the stock market crash of 1929 was a reaction to the prediction of the Great Depression. This text provides evidence that the stock market crash of 1929 lead to the Great Depression and it can happen again. Haugen argues that stock volatility can explode of its own accord resulting in a collapse in the stock market. The persistence of high volatility in the market creates uncertainty on the part of investors, which would result in declines in consumption and investing, resulting in more market volatility. This conversation between the market and investors can be both dangerous and destabilizing to the economy.
  • The Imprecision of Market Pricing: Haugen argues that the market overreacts to past records of success and failure on the part of business firms and explains to students that the market sets prices with great imprecision.
  • Mistakes to Avoid: This text emphasizes that players in today’s stock market make a fundamental mistake by overreacting to records of success and failure. By understanding this mistake, students can build stock portfolios or find mutual funds that will outperform the market averages.
  • Unique Perspective: Current financial economic models draw conclusions about market pricing, by assuming that responses to identical stimuli are identical. The New Finance argues each interaction among market participants must be considered as entirely unique. Therefore, both rational and behavioral economics need to be reconsidered since they are based on the preferences and behaviors of interacting individuals making all conclusions about the structure and behavior of market prices a meaningless exercise.
  • Learn from History: Investor interaction creates an additional component of volatility in stock return. This text shows that the explosions in this price-driven component of volatility are responsible for the Great Crash of 1929 and the Great Depression.
Two All-New Chapters–
  • Chapter 10- The Real Determinants of Expected Stock Returns: This new, never-before published study shows the historic performance of three return factor models from 1962 to the present, showing remarkable consistency in the determinants of expected stock returns, decade by decade.
  • Chapter 11- Dangerous Conversation: Highly relevant to the 2008 financial crisis, this chapter discusses evidence on the nature of stock volatility and the historic relationship between the stock market and economic activity.
 

Caracteristici noi

Engaging Topic Matter and Revolutionary Concepts–
  • NEW Chapter 11–Dangerous Conversation: Modern Finance contends that the stock market crash of 1929 was a reaction to the prediction of the Great Depression. This text provides evidence that the stock market crash of 1929 lead to the Great Depression and it can happen again. Haugen argues that stock volatility can explode of its own accord resulting in a collapse in the stock market. The persistence of high volatility in the market creates uncertainty on the part of investors, which would result in declines in consumption and investing, resulting in more market volatility. This conversation between the market and investors can be both dangerous and destabilizing to the economy.
Two All-New Chapters–
  • Chapter 10- The Real Determinants of Expected Stock Returns: This new, never-before published study shows the historic performance of three return factor models from 1962 to the present, showing remarkable consistency in the determinants of expected stock returns, decade by decade.
  • Chapter 11- Dangerous Conversation: Highly relevant to the 2008 financial crisis, this chapter discusses evidence on the nature of stock volatility and the historic relationship between the stock market and economic activity.