Re:The Impact of Index Investing: A Follow-Up
by dragonwriter on Wednesday May 04, 2016 @01:41PM
(#11630072)
> No, the hypothetical assumes that 50% of all assets are passively-investable.
No, it assumes that all assets are passively investable, and each asset is half held by passive investors and half held by active investors. Under any other set of assumptions (particularly, if its just a 50%/50% split of initial market value across all but not each individual investment), the equal-returns conclusion does not hold.
No, it assumes that all assets are passively investable, and each asset is half held by passive investors and half held by active investors. Under any other set of assumptions (particularly, if its just a 50%/50% split of initial market value across all but not each individual investment), the equal-returns conclusion does not hold.