Construct · 1 fields · 1 citations

arithmetic of active management: a standalone construct

One name. One construct. A landmark on the map.

● anchor · a standalone construct Nearest construct by meaning·not indexed
arithmetic ofactive management1 CONSTRUCTArithmetic of activeSHARPE · FINANCE

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Finance

the logic that the average actively managed dollar must earn the market return before costs and therefore trail passive investing after costs.

In finance, arithmetic of active management refers to the logic that the average actively managed dollar must earn the market return before costs and therefore trail passive investing after costs. This meaning comes from Sharpe (1991) in Financial Analysts Journal.[1]

Unit
Recovery means
Measured by

Next

Run it through the Collider, or take the citations with you.

See how arithmetic of active management sits against neighbouring constructs in the Collider, or export every reference on this page in one click.

Open in ColliderExport BibTeXReport this entry

Nearby constructs

market3 fields · 5 citationsjingle · one word, three constructsmust2 fields · 2 citationsjingle · one word, two constructspassive investing1 fields · 1 citationsanchor · a standalone construct

References

  1. Sharpe, W. F. (1991). The Arithmetic of Active Management. Financial Analysts Journal, 47(1), 7-9. https://doi.org/10.2469/faj.v47.n1.7

Cited on this page?

Confirm your construct, or correct us.

If your work is cited behind one of these entries, you know better than we do whether we captured the meaning right. Confirm it, suggest an edit, or dispute it, and your name goes on the entry as an author who has checked it, linked to your ORCID.

Claim your construct