But a new paper in the FinancialAnalystsJournal turns that assumption on its head, showing how investors can achieve higher returns by buying stocks with lower risk.
Now an article in the FinancialAnalystsJournal shows just how slim the odds are of coming out ahead with an actively managed fund, and why investors might be willing to roll the dice anyway.
"The implication for the 1990s is that chasing growth per se, in terms of earnings and revenue, really was the wrong thing to do, " says Ramezani, lead author of the study, which appeared in a recent issue of the FinancialAnalystsJournal.