net asset value

2 Arbitrage Opportunities and Blatant Market Inefficiency

Despite its numerous practical flaws and the many examples which any investor could bring up to contradict its basic tenets, the CAPM model and the fundamental idea that risk and return are perfectly correlated dominates current investment theory. As a result, it also is what the vast majority of financial advisors/professionals across the country explain to their clientele as they advocate portfolios and investments which they believe to be somewhere along the supposed risk/return frontier.