PARADOX OR AT LEAST VARIANCE FOUND - A COMMENT ON MEAN-VARIANCE APPROACHES TO RISK-RETURN RELATIONSHIPS IN STRATEGY - PARADOX LOST

In general the problem is that the computed mean-variance relationship for a period of time cannot be identified in distinction to the effects of shifts in the relationship over time-without additional information or assumptions. Thus, using a mean-variance approach to risk-return relationships means that statements about the nature of the mean-variance association cannot be confirmed in a nontrival fashion within the empirical system nor generalized to any other time period-including subperiods.