Defined Quote by Robert Haugen
“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.”
About This Quote
Source Academic Paper: Portfolio Theory, Robert Haugen, 1974
Definitional identity means a statement is true by definition, not by empirical proof.
In simple terms: Some truths are built into definitions.
Key Takeaway
Recognize logical truths that stem from definitions.
Themes
logic
philosophy
finance
theory
Mood
analytical
neutral
Type
philosophical
educational
When to use this quote
- mathematical proofs
- financial modeling
- educational instruction
Key Concepts
definition
identity
axioms
Questions to Reflect On
- When does a definitional truth become a practical limitation?
- How can we test assumptions beyond definitions?
A Different Perspective
Overreliance on definitions can obscure empirical testing.
![“The self is defined psychologically as the psychic totality of the individual. Anything that a [person] postulates as being a greater totality than [oneself] can become a symbol of the self. For this reason the symbol of the self is not always as total as the definition would require.” quote by Carl Jung](https://sms4smile.com/quotes/img-quotes/251/carl-jung-274_defined_the-self-is-defined-psychologically-as-t_7148.jpg)
