Vanguard value index fund

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Question

A portfolio manager comes up to and says: "This past year my returns were 18%. The SP500 only delivered 12%, the Russell 2000 (a small cap index) only delivered 13%, and the Vanguard Value Index Fund (a high B/M index fund) delivered 16%. Therefore I am a better stock picker and a great money manager because I beat all the FF risk factor portfolios and you should put your money with me." Name two ways in which this conclusion might be faulty.

Reference no: EM133272619

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