Let’s address the elephant in the room. The last printed edition of Modern Investment Theory (5th edition) was published in 2001 by Prentice Hall. It is out of print.
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Body: Seeking the PDF of "Modern Investment Theory" by Robert A. Haugen (or sharing it for fellow researchers/students). If you have a copy or a reliable source to download, please share the file or a library link. Key topics I'm interested in: robert haugen modern investment theorypdf
But then comes the hammer. He systematically lists the that EMH cannot explain: the size effect, the book-to-market effect (value vs. growth), and the January effect. Let’s address the elephant in the room
To understand Haugen’s contribution, one must first understand the orthodoxy he sought to dismantle. Modern Investment Theory, as traditionally taught, posits that investors are rational actors who process information instantaneously and without bias. In this world, known as the "rational expectations" model, a stock’s price is always equal to its intrinsic value. If a stock were undervalued, rational investors would pounce on it, driving the price up until the opportunity disappeared. Consequently, the only way to achieve superior returns was to expose oneself to higher systematic risk, often measured by "Beta." Key topics I'm interested in: But then comes the hammer