The article from the NYT titled NYT20131208 Beating the Market, as a Reachable Goal talks about Mr. Robert Olstein being furious when people argue he would not be able to beat the market. The article explains how Mr. Olsens fund has done so most of the time. The article also hints that Mr. Olsen is good in picking stocks. As Mr. Olsen declares, I care about specific companies and whether they are good buys at their price, and if they are, well hold on to them. Suppose you have all data you imagine (monthly returns on the fund, monthly market returns, you name it). Please explain how you would analyze whether Mr. Olsens fund really shows some special skill in determining his funds composition, or whether the extra return he earns is basically compensation for the risk the fund is taking.