Question: We covered some performance measures in Chapter 18 that are used to rank the performance of portfolio managers like the Jensen's alpha measure. Is market

We covered some performance measures in Chapter 18 that are used to rank the performance of portfolio managers like the Jensen's alpha measure. Is market beating performance due to portfolio manager skill or did they just get lucky? Studies noted in Chapter 4 that compare the performance of active managers with passive strategies like investing in a low cost index fund typically show that about two-thirds of active managers fail to achieve returns as high as the low cost index fund strategy. The attached article addresses the skill vs. luck question. After reading the article, offer your opinion on which matters most, skill or luck. The usual one post and one response requirements apply.

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