Much of Bob Rice's "The Alternative Answer" will convey familiar information to those who have followed the quest for alpha over the years. That’s because the book isn’t written for the cognoscenti. This is a book-length sales pitch.
A portfolio becomes optimal by virtue not merely of what assets are in it, but by virtue of what is paid for each. Examining the implications of that point, Professor Johnstone finds a "logical circularity built into the CAPM equilibrium pricing mechanism."