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Article #1732"Fund Evolution" (WSJ 1-7-93 p.R-6) ?!
From: Hank Roberts
Date: Wed, 13 Jan 1993 00:56
Date: Wed, 13 Jan 1993 00:56
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The Wall Street Journal has an article titled Fund Evolution. It appears that in describing how mutual funds performed historically, the common practice is to _drop_ from the averages any company that's gone out of business subsequently. The more successful ones remain so the "average performance" is distorted; and distorted increasingly as time goes by. They actually drop the unfavorable trials and report only the favorable ones. This bothers me. Is it commonly done elsewere in economic reporting?
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Newsgroups: sci.econ Path: arc1-ca.pugleaf.net!sparky!uunet!well!well.sf.ca.us!hank From: hank@well.sf.ca.us (Hank Roberts) Subject: "Fund Evolution" (WSJ 1-7-93 p.R-6) ?! Message-ID: <hank.726886606@well.sf.ca.us> Summary: "survivorship bias" in averaging Sender: news@well.sf.ca.us Organization: Whole Earth 'Lectronic Link Date: Wed, 13 Jan 1993 00:56:46 GMT Lines: 11