Henriksson and Merton (1981)measure market timing using the maximum of zero and the market risk premium as a factor.

Name: Henriksson and Merton (1981)measure market timing using the maximum of zero and the market risk premium as a factor.
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Henriksson and Merton (1981)measure market timing using the maximum of zero and the market risk premium as a factor.They operationalise this concept as the model in equation 20.15,in which a positive value of F1F1F1S1F1F1F10_p indicates market timing ability:

Henriksson and Merton (1981)measure Market Timing Using the Maximum of Zero