Passive Investment Strategies and Efficient Markets

10 Pages Posted: 18 Mar 2003

See all articles by Burton G. Malkiel

Burton G. Malkiel

Princeton University - Bendheim Center for Finance; National Bureau of Economic Research (NBER)

Abstract

This paper presents the case for and the evidence in favour of passive investment strategies and examines the major criticisms of the technique. I conclude that the evidence strongly supports passive investment management in all markets - small-capitalisation stocks as well as large-capitalisation equities, US markets as well as international markets, and bonds as well as stocks. Recent attacks on the efficient market hypothesis do not weaken the case for indexing.

Keywords: Passive Investment Strategies, Efficient Markets

Suggested Citation

Malkiel, Burton G., Passive Investment Strategies and Efficient Markets. Available at SSRN: https://ssrn.com/abstract=388238

Burton G. Malkiel (Contact Author)

Princeton University - Bendheim Center for Finance ( email )

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National Bureau of Economic Research (NBER)

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