2 of 2 people found the following review helpful:
Good (if overpriced) little book, 2007-06-17
This book is not:
1. A thorough critique of CAPM and APT
2. Long
3. A good explanation of why certain inefficiencies exist in the market
That being said, the book is a good essay on how to look for and find various factors that lead towards market outperformance. Haugen uses regression models and some common-sense statistical reasoning to choose which factors are actually useful.
0 of 0 people found the following review helpful:
A Real Eye Opener, 2006-08-20
A must read if you want to understand what makes stocks prices move. A technical book but written in a very accessible and easy to read style.
11 of 13 people found the following review helpful:
Good Analysis, 2003-06-07
The Inefficient Stock Market is a nice slap in the face to Modern Finance. Getting my MBA, i was always turned off by Portfolio Management Theory because of the unrealistic assumptions made on the onset (such as everyone being rational and everyone holding an efficient market portfolio). Mr. Haugen provides a great analysis and statistical evidence to show that many of those critical assumptions are in fact wrong.He also provides an investment strategy of sorts that outperforms the S&P 500. All hedge fund managers should read this book.
14 of 14 people found the following review helpful:
Good accessible book on market inefficiencies., 2001-12-17
Most investors would benefit from reading this book. It is a good overview of what is known about market inefficiencies and how they can be exploited.
For those who find it too down-market, he also has a weighty tome called "Modern Investment Theory" which is more thorough and more academic in tone. As an example, it describes how to combine Markowicz's techniques with factor models to exploit the inefficiencies more effectively than the approach suggested in 'What works on Wall St' etc.
3 of 31 people found the following review helpful:
Badly written book with lot of mistakes, 2001-09-09
I think that CAMP, APT, etc aren't good for investors, but this book misleads them even more. There are several mistakes, and opposite data in various chapters.