"CAPM also makes use of what is called a "definitional identity." This is something that is automatically true, simply because of the way things have been defined."

--

Source : "The Inefficient Stock Market - What Pays Off And Why". Book by Robert Haugen, ch. 2, Estimating Expected Return with the Theories of Modern Finance, p. 16, 1999.

Robert Haugen

#Identity Quotes #Use Quotes #Way Quotes