It’s been almost 17 years since two economists at the University of Chicago, Eugene Fama and Kenneth French, published an attack on the stock price measure of risk known as “beta,” prompting “Beta is Dead” headlines from numerous financial publications. While these obituaries may have been a bit premature (beta is still widely taught in university finance courses and widely accepted in the business valuation field), the groundbreaking article caused some irreparable damage to beta’s reputation. Now, with the recent surge in popularity of ETFs, beta has been reinvented as a metric for evaluating and comparing the efficiency of funds. [click to continue…]
{ Comments on this entry are closed }
