Question
Assume markets are perfectly efficient, so no asset manager can beat the market by skill, only by luck, with a 50% chance every year. If
Assume markets are perfectly efficient, so no asset manager can beat the market by skill, only by luck, with a 50% chance every year. If there are 5000 funds, how many would you expect to have beaten their benchmark index every year for the past 7 years?
Answer is 39.06
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
