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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.

"The Inefficient Stock Market - What Pays Off And Why". Book by Robert Haugen, ch. 2, Estimating Expected Return with the Theories of Modern Finance, p. 16, 1999.
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.