Haugen argues that traditional investment theory is flawed due to its reliance on unrealistic assumptions, such as:
In a typical finance textbook, you plot a line: Risk (X-axis) vs. Return (Y-axis). The line goes up and to the right. High risk = High reward. modern investment theory haugen pdf new
Haugen, R. A. (2004). The New Finance: Overcoming the Global Risk Aversion Crisis. Prentice Hall. Haugen argues that traditional investment theory is flawed
Yes—but with a filter.