The cheaper the stock, the better the outlook for future returns. - Robert Haugen

If we observe the performance of only those funds that remain active, we will tend to find that the average performance of the surviving funds exceeds that of the market.

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.

So you see, in the end, it is nearly certain that the power of prediction must triumph over the arrogance of elegance.