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Quote by Eugene Fama

“People would be a lot more skeptical if they understood that there is an incredible amount of chance in the results that you observe for active managers. So the distribution of outcomes is enormously wide - but that's exactly what you'd expect by chance with lots of active managers who hold imperfectly diversified portfolios. The really good portfolios contain a lot of really lucky picks, and the really bad portfolios contain a lot of really unlucky picks as well as some really bad ones.”

Quote by Eugene Fama

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Eugene Fama
Eugene Fama

Eugene Fama, born on February 14, 1939, is an esteemed economist whose research has had a profound impact on the field of finance. He is best known for his work on the Efficient Market Hypothesis (EMH), which emphasizes the information efficiency of markets, and for developing the Capital Asset Pricing Model (CAPM) with Kenneth French and James MacKinlay. Fama's research has significantly influenced investment portfolio management and financial decision-making. more

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Book:Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
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