Various trading strategies appear to offer non-zero alphas


Various trading strategies appear to offer non-zero alphas when we examine real world data. If indeed these alphas are positive, it could be explained by any of the following except:

The market portfolio is inefficient, but the market portfolio proxy used to calculate the alphas is efficient.

A stock's beta with the market portfolio does not adequately measure a stock's systematic risk.

The positive alpha trading strategies contain risk that investors are unwilling to bear but the CAPM does not capture.

Investors are systematically ignoring positive-NPV investment opportunities.

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Financial Management: Various trading strategies appear to offer non-zero alphas
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