A comprehensive list of factors brings predictive stability and predictive stability and predictive power.
Robert HaugenBehaviorists tell us that we tend to overweight and overreact to the most recently received information. If we do, we will find that the information that we thought was so important becomes tempered, and reduced in significance, by new and related information that follows.
Robert HaugenThe New Finance focused on the market's major systematic mistake. In failing to appreciate the strength of competitive forces in a market economy, it over estimates the length of the short run. In doing so, it overreacts to records of success and failure for individual companies, driving the prices of successful firms too high and their unsuccessful counterparts too low.
Robert HaugenCAPM 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