Sharpe-Linter market line, identified as the standard return on the market. This
implies that fund managers possess an information privilege. Ippolito (1989)
provided a more extensive analysis on 143 mutual funds in the U.S. for the period
from 1965 to 1984. Fund returns, after all mutual fund expenses but before any
load fee, were compared to the Sharpe-Lintner market line. He found that fund
returns were 0.83 percent higher on average. Ippolito concluded that fund
managers were highly informed traders and were compensated for the cost of
obtainin ...
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