Bodie, Zvi, Kane, Alex, Marcus, Alan J.

 

Bodie, Zvi, Kane, Alex

11

38

 

McGraw-Hill (Visit publisher website)

2008

English

 

 

 

Basic

 

 

Investment management, portfolio theory, efficient markets hypothesis, random walk, weak-form, semi-strong-form and strong-form of market efficiency, technical analysis, resistance levels, support levels, fundamental analysis, active vs. passive portfolio management, index fund, diversification, resource allocation, event study, abnormal returns, validity of market efficiency, testing market efficiency, market anomalies,stock market analysts, mutual fund managers, survivorship bias

 

From the book - [From analysis of a 1950s study on stock price movements over time], it soon became apparent that random price movements indicated a well-functioning or efficient market, not an irrational one. In this chapter we explore the reasoning behind what may seem a surprising conclusion. We show how competition among analysts leads naturally to market efficiency, and we examine the implications of the efficient market hypothesis for investment policy. We also consider empirical evidence that supports and contradicts the notion of market efficiency.

 

11.1 Efficient Walks and the Efficient Market Hypothesis
11.2 Implications of the EMH
11.3 Event Studies
11.4 Are the Markets Efficient?
11.5 Mutual Fund and Analyst Performance
11.6 Key Terms
11.7 Summary
11.8 Websites
11.9 Problems
11.10 Solutions to Concept Checks

 

If you are interested in purchasing the book, please click here.

 

Bodie, Kane, and Marcus’ Investments is the leading textbook for the graduate/MBA investments market. It is recognized as the best blend of practical and theoretical coverage, while maintaining an appropriate rigor and clear writing style. Its unifying theme is that security markets are nearly efficient, meaning that most securities are usually priced appropriately given their risk and return attributes. The text places greater emphasis on asset allocation, and offers a much broader and deeper treatment of futures, options, and other derivative security markets than most investment texts.