Investments, tenth edition

  Chapter 9 The Capital Asset Pricing Model 

 We have streamlined the explanation of the simple CAPM 

and updated and integrated the sections dealing with 

extensions of the CAPM, tying together extra-market 

hedging demands and factor risk premia.  

  Chapter 10 Arbitrage Pricing Theory 

 The chapter contains new material on the practical feasi-

bility of creating well-diversified portfolios and the impli-

cations for asset pricing.  

  Chapter 11 The Efficient Market Hypothesis 

 We have added new material documenting the behavior of 

market anomalies over time, suggesting how market inef-

ficiencies seem to be corrected.  

  Chapter 13 Empirical Evidence on Security 

Returns 

 Increased attention is given to tests of multifactor models 

of risk and return and the implications of these tests for 

the importance of extra-market hedging demands.