CHAPTER 3
THE LUCK-SKILL CONTINUUM

IN 2006, TRADINGMARKETS, a company that helps people trade stocks, asked ten Playboy Playmates to select five stocks each. The idea was to see if they could beat the market. The winner was Deanna Brooks, Playmate of the Month in May 1998. The stocks she picked rose 43.4 percent, trouncing the S&P 500, which gained 13.6 percent, and beating more than 90 percent of the money managers who actively try to outperform a given index. Brooks wasn't the only one who fared well. Four of the other ten Playmates had better returns than the S&P 500 while less than a third of the active money managers did.1

Although the exercise was presumably a lighthearted effort at attracting attention, the results raise a serious question: ...

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