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...

Using a large sample of cross-border mergers, we measure the effect of a change in location on systematic risk. When a target firm's location moves, a large part of its systematic risk switches from being related to its home equity market to that of the acquirer. On average, the change in betas...

Real options are valuable sources of flexibility that are either inherent in, or can be built into, corporate assets. The value of such options are generally not captured by the standard discounted cash flow (DCF) approach, but can be estimated using a variant of financial option pricing...

For much of the past century, there has been an increased tendency for large infrastructure projects to be funded and operated by governments. Since the early 1980s, however, private-sector financing and management of such projects have experienced a dramatic revival. In some cases, this revival...

In these "extracts" from the world's best-selling graduate textbook, the authors offer a number of suggestions for practitioners, including: Copyright (c) 2008 Morgan Stanley.