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Preet Banerjee, B.Sc., FMA, DMS is a former stockbroker and financial advisor in Toronto. Information on this site is for entertainment purposes ONLY. Always seek individual professional advice before making any financial decisions.

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The Market is The Market

July 31st, 2008 • Related • Filed Under


                                                         
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If ‘the market returns’ are the market returns,
And the market return can only be made up of active returns and passive returns,
And if the passive return before fees equals the market return,
Then the average return of all the active investors before fees must equal the market return too.

Therefore the average active investor will lose to all passive investors by the increased cost of active management.

But if you’d rather read it from Nobel Prize Winner William Sharpe, click here.

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  1. Pingback by Weekly Dividend Investing Roundup - August 9, 2008 » The Dividend Guy Blog on 9 August 2008:

    [...] market is the [...]

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