We have sometimes heard investment managers say, I followed that (expletive deleted) theory and bought high beta stocks last year and they did worse than low beta stocks That theory is (expletive deleted) Is this a valid test, and is this empirical evidence inconsistent with the theory ...

That is NOT a valid test of the theory and the empirical evidence IS consistent with t ...

We have sometimes heard investment managers say, I followed that (expletive deleted) theory and bought high-beta stocks

Question:

We have sometimes heard investment managers say, "I followed that (expletive deleted) theory and bought high-beta last year and they did worse than low-beta That theory is (expletive deleted)." Is this a valid test, and is this empirical evidence inconsistent with the theory?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...