Alpha Relative to Simple Diversified Portfolios
June 10, 2025 - Bonds, Equity Premium
How much should investors who hold a conventionally diversified portfolio (stocks and bonds) be willing to pay for and an additional equity or bond fund that outperforms its benchmark (provides alpha)? In their May 2025 paper entitled “How Much Should You Pay for Alpha? Measuring the Value of Active Management with Utility Calculations”, Andrew Ang… Keep Reading