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are Few.”51 The article details the findings of a study52 by professors Laurent Barras, Olivier Scaillet and Russell Wermers about the performance of 2,076 mutual fund managers over the 32-years from 1975 to 2006. The study found that 99.4% of the managers displayed no evidence of genuine stock picking skill, and that the 0.6% of managers who did outperform the index were “statistically indistinguishable from zero,” or as Hulbert puts it, “just lucky.” Figure 3-1 depicts the study’s results. Figure 3-1

A statistical test called the Student’s t-test was introduced in 1908 by William Sealy Gosset, referred to as the “Student,” while working for the Guinness brewery in Dublin, Ireland to evaluate the quality of the brewery’s ingredients. The t-test can be used

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...

Index Funds: The 12-Step Recovery Program for Active Investors  

This book reveals the potential land mines and pitfalls of active investing and educates readers on the benefits of passive investing with i...