Expert insight

Is there (n)ever a good time for active?

May 02, 2024

James J. Rowley, Jr., CFA

Vanguard Global Head of Investment Implementation Research

The table includes 25 boxes (five rows across and five rows from top to bottom). The horizontal axis represents volatility, low to high across each row, and the vertical axis represents dispersion, low to high down each column. A vertical key is labeled “Excess return (%) as a function of volatility and dispersion.” The table shows there does not seem to be a particular relationship between average excess return and volatility or dispersion, as average excess returns as a function of volatility and dispersion range from –0.44 to 0.37.
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