A large number of articles in the popular financial press have highlighted the substantial differences in the returns from equal-weighted and value-weighted indexes over the last several years. Thus, an equal-weighted Value Line Composite Index declined 64.8 percent from March 11, 1968, to...

This manuscript reviews the evolving literature on the pricing of assets and the structure of financial markets. It begins with the development of early stock valuation models and proceeds to a description of the efficient-market hypothesis. The survey then examines recent empirical data that...