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by jessermeyer 1935 days ago
Under what time-horizon is the theorem valid for?
1 comments

It's valid for any time period. The crucial point is that the theorem talks about the aggregate returns. It's like if you have 10 cars in a race, and 3 of them run at exactly the same speed which is the average of all ten (i.e. they follow the index), then the average speed of the remaining 7 (the actively managed) must also match that speed, even if their individual speeds can vary a lot.