One response to “Lies, damn lies and FTfm statistics”

  1. “alpha” is easily the most misunderstood term in the entire investment management industry. This journalist just made the same mistake (i.e. confusing market risk premia for alpha) that so many “sophisticated” investment professionals make every day.

    And Sharpe’s tautological “zero sum game” argument is regularly(and, I believe, in some cases deliberately) misinterpreted by smart people on both sides of the active – passive debate.

    I enjoy reading your posts – so rare to hear an intelligent, unconflicted voice.