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.