Richard A. Brealey

Richard Brealey is Emeritus Professor of Finance at London Business School.

  • An Introduction to Risk and Return from Common Stocks, Second Edition

    An Introduction to Risk and Return from Common Stocks, Second Edition

    Richard A. Brealey

    Richard Brealey presents a brief, nontechnical description of current research on investment management and its implications for the investment manager. He covers market efficiency, valuation, and modern portfolio theory in a book that The New York Times noted "rates high as reading for every professional investor."Brealey's easy-to-understand approach to modern investment theory will also prove invaluable to students. The book evaluates the use of technical models and fundamental analysis for common stock selection, examining the implications of the random walk hypothesis, publicly available information, and the efficient market theory. It takes up the valuation of common stocks and reasons for fluctuations in earnings and deals with the choice of a common stock portfolio, discussing how stocks move together, the effect of the market on stock prices, passive and active portfolios, risk and return, and measuring investment performance.

    • Hardcover $24.00
    • Paperback $30.00
  • A Bibliography of Finance and Investment

    Richard A. Brealey and Connie Pyle

    Interest in the study of finance has risen sharply during the past decade, with a consequent increase in the number of published works on the subject. This bibliography provides a classified listing of approximately 3,600 theoretical and empirical studies in the fields of corporate finance and speculative financial markets, most of which have been published in statistical or general economic journals since 1960 and primarily in the United States. Works are listed both by author and by subject, and each subject heading is preceded by a short introduction to the available materials.

    Studies are grouped in 150 subject areas under the following main headings: Works of Reference and Anthologies; Securities Markets; Investment Institutions and the Ownership of Securities; Investment Management; Market Indexes and the Return on Equities; The Economy and the Stock Market; The Valuation of Equities; The Behavior of Accounting Numbers and Their Effect on Stock Prices; Decisions under Uncertainty and General Equilibrium Conditions; Portfolio Selection and Capital Asset Pricing Theory; Market Efficiency and the Random Walk Hypothesis; Technical Analysis; Volume and Unusual Market Activity; Performance Measurement; The Accuracy of Forecasts; Sales of Stock and Changes in Issued Capital; Options and Convertible Securities; Interest Rates; Bonds and Preferred Stock; Money Market and International Capital Markets; Other Speculative Markets; Corporate Finance—General; Capital Structure; Dividend Policy; Asset Management; Mergers, Bankruptcies, and Reorganizations; Taxation.

    • Hardcover $23.00
  • Security Prices in a Competitive Market

    Security Prices in a Competitive Market

    More about Risk and Return from Common Stocks

    Richard A. Brealey

    This book is a sequel to An Introduction to Risk and Return from Common Stocks (The MIT Press, 1969), although it is fully self-contained and can be read independently. Both books describe in non-technical language the behavior of common stock prices as revealed by formal statistical work. In the process they offer a broad survey of recent quantitative academic research on the subject, much of which is currently in an inaccessible form.

    The earlier book, which the New York Times says "rates high as reading for every professional investor," was concerned with the basic factors affecting risk and return from common stocks. The present work is concerned primarily with unusual factors that may influence the value of an investment. It is divided into three parts: the first considers various company decisions that may affect the price of its stock (decisions on capital structure, dividend policy, and acquisitions); the second looks at particular types of activity in the stock (insider trading, short selling, and secondary distributions); while the third considers securities that are convertible to common stock.

    Richard Brealey continues to cover new ground. Little of the material in this book can be found in existing investments texts, and like his first book, it should provide an invaluable source of information for the professional investor and may well be received in the same spirit.

    • Hardcover $27.50
    • Paperback $30.00
  • An Introduction to Risk and Return from Common Stocks

    Richard A. Brealey

    This book draws upon a wide range of American and British research material to present a concise analysis of the fundamental character of stock price changes. The viewpoint is that of the statistician, but the book assumes no statistical knowledge on the part of its readers and should appeal especially to the professional investor and finance student. Care is taken at each stage to consider the implications of the findings for methods of investment management.

    The book takes the form of three self-contained sections. It opens with a description of the random walk hypothesis of stock price movement and an analysis of the evidence and its implications. The author proceeds to discuss the nature of risk and its relationship to expected return. The section concludes with an examination of the co-movement between stocks.

    The second part demonstrates the link between the price behavior of a stock and changes in investor expectations for the company's earnings. This leads to an analysis of the behavior of company earnings.

    The final section is concerned with the implications of previous findings for portfolio construction. It discusses the way in which an investor's actions should be influenced by his willingness to accept risk and the effect on risk of diversification.

    The assumptions behind the measure of risk adopted throughout the book are treated in a special appendix.

    The evidence on any topic is clearly illustrated by graphs and tables in the text.

    • Hardcover $16.50