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An analogy between stock market investing and horse race betting is drawn. Racetrack betting data are used in a test of the efficient market theory, more specifically, the investigation of whether betting strategies which yield positive rates of return may be devised on the basis of observable betting patterns. Methodology and data results are given. The conclusions are made that net profits can be made on place and show betting and that strategies may be developed which exceed the return from betting the favorite to win. The results are compatible with rational behavior.

T. Jerald Moore, head of the employee benefits division of Aetna Life Insurance Company, examines the pension business and Aetna's reaction to recent changes. Aetna is no longer sharing the conservative reputation associated with most life insurance companies and is shifting its marketing objective away from guaranteed business. Moore's position brings him into contact with clients, field representatives, and the financial division. Aetna's size is one factor contributing to its success in the financial markets. Innovative product development which takes in to account short and long range guaranteed investment strategy is designed to suit various investor needs. The pension business has definitely changed as it is now 'market driven instead of product driven'.

Increased public awareness of the importance of money management and investment options has caused a significant increase in the sales of mutual funds. The Investment Company Institute's estimate for 1983 indicates a 155 per cent increase in mutual fund sales compared to 1982 sales. Small investors benefit significantly by using mutual funds to enter the stock market. The diversification of mutual funds minimizes the risks associated with investments and attracts both small and large investors.

Peter L. Bernstein, editor of the Journal of Portfolio Management, advises pension plan investors against taking unnecessary risks through short-term investments. High turnover portfolios compensate higher risks but long duration stock investments cut down on risks associated with reinvestment. Performance pressure can put investment managers in an aggressive posture with questionable benefits. Advisors specializing in investments can be greatly beneficial but selecting an advisor can be difficult and care is advised. The use of consulting organizations can assist in selecting advisors. Foreign investments can be successful but the risk involved needs to be acknowledged prior to investing.