3 ms·
In aggregate it's mathematically impossible for active management to outperform the market: https://web.stanford.edu/~wfsharpe/art/active/active.htm https://we
by pedrocr 9y ago
In aggregate it's mathematically impossible for active management to outperform the market:
https://web.stanford.edu/~wfsharpe/art/active/active.htm https://web.stanford.edu/~wfsharpe/art/active/active.htm
For every smart active manager that beats the index someone else is on the other side of the bet losing.
- ch4s3 9y agoThat's pretty much my point.
- pedrocr 9y agoI was reinforcing that it wasn't a matter of "evidence" it's just impossible.
- rphlx 9y agoNote though that once the market is majority passive - which seems likely within the next decade - it actually is theoretically possible for active to slightly outperform passive.