Date of Award

5-2012

Document Type

Honors Thesis

Degree Name

Bachelor of Arts

Department

Business Administration

Abstract

This study documents the monthly performance of active versus passive investing over the last 25 years. It also identifies several variables that are closely related to the current and next month’s success of one over the other. Three useful factors identified include the Fed funds rate, the VIX volatility index, and Russell Investments’ CrossVolTM index. All three are valuable in explaining and predicting the success of active management to certain extent.

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