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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.

— Robert Haugen The Inefficient Stock Market - What Pays Off And Why (1999)

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More quotes by Robert Haugen

In real-world Finance, they don't pay for elegance. They pay for power - predictive power.

The Inefficient Stock Market - What Pays Off And Why (1999)

When you buy a lottery ticket, you don't know how tickets have been sold. But sold they have been. And there is an underlying distribution for the game.

The Inefficient Stock Market - What Pays Off And Why (1999)

Less volatile stocks tend to have negative abnormal profits; more volatile stocks tend to have positive abnormal profits.

The Inefficient Stock Market - What Pays Off And Why (1999)

The cheaper the stock, the better the outlook for future returns.

The Inefficient Stock Market - What Pays Off And Why (1999)

The cheapness family is the most powerful of the five.

The Inefficient Stock Market - What Pays Off And Why (1999)

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Quote text and notes from Wikiquote: Robert Haugen (page history), available under CC BY-SA 4.0. Source quality and labels are our own summary of what Wikiquote records.