Sharpe's (1991)study reveals that active managers typically outperform passive managers even after transaction costs and fees.

Name: Sharpe's (1991)study reveals that active managers typically outperform passive managers even after transaction costs and fees.
Brand: Quizplus
Rating: 4.7 (49 reviews)

Question

Quizplus · Accepted Answer

Sharpe's (1991) study actually suggests that active managers typically underperform passive managers after accounting for transaction costs and fees, due to the zero-sum nature of investing and the additional costs incurred by active management.

Sharpe's (1991)study Reveals That Active Managers Typically Outperform Passive Managers