Active Versus Passive: The Evidence

@inproceedings{Merker2019ActiveVP,
  title={Active Versus Passive: The Evidence},
  author={Christopher K. Merker and Sarah W. Peck},
  year={2019}
}
The Efficient Markets Hypothesis predicts that in markets where information is readily available and widely known there are less likely to be profitable opportunities for stock pickers or active managers. In these markets, it makes more sense to use passive investments and forgo the higher fees of active managers. Correspondingly in markets where there is both less quantity and quality of information there will be profitable opportunities for talented stock pickers to buy and sell mis-priced… Expand