Fed: Skill and Efficiency in the U.S. Mutual Fund Industry
June 04, 2026
June 04, 2026
WASHINGTON, June 4 (TNSLrpt) -- The Federal Reserve issued the following white paper abstract (No. 2026-032) in May 2026 by Dong Hwan Oh and Andrew J. Patton, entitled "Skill and Efficiency in the U.S. Mutual Fund Industry".
Here are excerpts:
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We propose a new measure of mutual fund manager ability: "efficiency" is the ability to accrue the risk premium associated with a risk factor. The familiar abnormal return, or alpha, is shown . . .
Here are excerpts:
* * *
We propose a new measure of mutual fund manager ability: "efficiency" is the ability to accrue the risk premium associated with a risk factor. The familiar abnormal return, or alpha, is shown . . .