![If assets are priced rationally, variables that are related to average returns, such as size and book-to-market equity, must proxy for sensitivity to common (shared and thus undiversifiable) risk factors in returns. The time-series regressions give direct evidence on this issue. In particular, the slopes and R2 values show whether mimicking portfolios for risk factors related to size and [book-to-market] capture shared variation in stock and bond returns not explained by other factors. (Eugene Fama)](https://cdn.quotesdtb.com/img/quotes_images_webp/47/eugene-fama-assets-average-425047.webp)
If assets are priced rationally, variables that are related to average returns, such as size and book-to-market equity, must proxy for sensitivity to common (shared and thus undiversifiable) risk factors in returns. The time-series regressions give direct evidence on this issue. In particular, the slopes and R2 values show whether mimicking portfolios for risk factors related to size and [book-to-market] capture shared variation in stock and bond returns not explained by other factors.
Eugene FamaRelated topics
assets average bond capture common direct equity evidence issue mimicking particular proxy risk sensitivity show size stock thus variation returnsRelated quotes
This priesthood became a closed group, able to control enormous wealth and incomes, and concerned very largely with the study of the solar and astronomical periodicities on which there influence was originally based. With the surplus thus created, the priesthood was able to command human labor in huge amounts and to direct this labor from the simple tillage of the peasant peoples to the diversified and specialized activities that constitute civilized living.
Carroll Quigley
The investor has the benefit of the stock market's daily and changing appraisal of his holdings, 'for whatever that appraisal may be worth', and, second, that the investor is able to increase or decrease his investment at the market's daily figure - 'if he chooses'. Thus the existence of a quoted market gives the investor certain options which he does not have if his security is unquoted. But it does not impose the current quotation on an investor who prefers to take his idea of value from some other source.
Benjamin Graham
In sum, the processes of evolution create initially comparatively simple dynamical systems on particular levels of organisation. The processes then lead to the progressive complexification of the existing systems and, ultimately, to the creation of simpler systems on the next higher organisational level, where complexification begins anew. Thus evolution moves from the simpler to the more complex, and from the lower to the higher level of organisation.
Ervin László
There is only one thing that arouses animals more than pleasure, and that is pain. Under torture you are as if under the dominion of those grasses that produce visions. Everything you have heard told, everything you have read returns to your mind, as if you were being transported, not toward heaven, but toward hell. Under torture you say not only what the inquisitor wants, but also what you imagine might please him, because a bond (this, truly, diabolical) is established between you and him.
Umberto Eco
Those who marry God can become domesticated too it's just as hum-drum a marriage as all the others. The word ''Love'' means a formal touch of the lips as in the ceremony of the Mass, and ''Ave Maria '' like ''dearest'' is a phrase to open a letter. This marriage like the world's marriages was held together by habits and tastes shared in common between God and themselves it was God's taste to be worshipped and their taste to worship, but only at stated hours like a suburban embrace on a Saturday night.
Graham Greene
