Sentences with phrase «arithmetic of active management»

William Sharpe demonstrated in his famous paper, «The Arithmetic of Active Management,» that passive management does not depend on market efficiency.

Additionally, as Lasse Pedersen of AQR Capital Management explains: «If most investors were passive, the liquidity in individual securities would vanish as investors would only trade overall indices,» Mr. Pedersen writes in «Sharpening the Arithmetic of Active Management.»

All you need is simple logic and basic arithmetic, as shown by William Sharpe (the Nobel laureate mentioned above) in his paper, «The Arithmetic of Active Management», published in The Financial Analysts Journal in 1991.

Not exact matches

William Sharpe showed how any purported superiority of active management as a group can only be «justified by assuming that the laws of arithmetic have been suspended for the convenience of those who choose to pursue careers as active managers».