Insider trading has been rife on Wall Street, academics conclude

Re:Insider trading has been rife on Wall Street, academics c... by pedrocr on Sunday February 11, 2018 @04:46PM (#16355005)

In aggregate it's mathematically impossible for active management to outperform the market:

https://web.stanford.edu/~wfsharpe/art/active/active.htm

For every smart active manager that beats the index someone else is on the other side of the bet losing.

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Re:Insider trading has been rife on Wall Street, academics c... by rphlx on Monday February 12, 2018 @08:40PM (#16364075)

Note though that once the market is majority passive - which seems likely within the next decade - it actually is theoretically possible for active to slightly outperform passive.

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Re:Insider trading has been rife on Wall Street, academics c... by ch4s3 on Sunday February 11, 2018 @09:36PM (#16356141)

That's pretty much my point.

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Re:Insider trading has been rife on Wall Street, academics c... by pedrocr on Monday February 12, 2018 @04:46AM (#16357619)

I was reinforcing that it wasn't a matter of "evidence" it's just impossible.

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