Assistant Professor of Finance, Indiana University. This paper is based upon parts of Chapters 3 and 4 of the author's doctoral dissertation, completed at The University of Texas at Austin in 1975. Thus, a debt of gratitude is owed to the dissertation committee members: Lee A Tavis, University of Notre Dame; A. J. Senchack and James L. Weatherby, The University of Texas at Austin; and Richard W. McEnally, The University of North Carolina. Two referees of this Journal, Michael Simkowitz and Seha M. Time, also provided many helpful comments on earlier drafts. Of course, these individuals are in no way responsible for remaining errors.