The efficient market"s paradigm is at the unlikely extreme end of a spectrum of possible states. In the Fourth Edition, Robert Haugen shows how the complexity of investor interactions has important market pricing consequences which lead to an inefficient stock market. Some of the most important work of Bob Haugen"s career appears in two new chapters: Chapter 10. The Real Determinants of Expected Stock Returns This never before published study shows a remarkable consistency in the determinants of expected stock returns through the historic performance of three models decade by decade from 1962 to the present. Chapter 11. Dangerous Conversation, which is highly relevant to the current financial crisis, discusses evidence on the nature of stock volatility, as well as the historic relationship between the stock market and economic activity. For further study on the author"s unique approach to stock market analysis, read the two other books of this trilogy, "Beast...