Passive Investment Strategies and Efficient Markets
10 Pages Posted: 18 Mar 2003
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: Suggested Citation
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Passive Investment Strategies and Efficient Markets
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