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Berkeley says, "Now the set rules or established methods wherein the Mind we depend on excites in us the ideas of sense, are called the deductions of logic; and these we learn by experience, which teaches us that such and such ideas are attended with such and such other ideas, in the ordinary course of things."
Benchmarking Performance
The process of comparing the performance of one's investments or company to a standard or a set of standards.
Rational Risk Factors
Factors based on economic theory that affect asset prices and can predict future investment returns, assuming that market participants act rationally.
Value Premium
The excess returns that investors may earn by holding stocks that are considered undervalued compared to their fundamentals.
Market Irrationality
Occurrences when financial markets make movements that are inconsistent with the underlying economic fundamentals, sometimes leading to asset price bubbles or crashes.
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