We empirically show the power of the equally weighted S  P 500 portfolio over Sharpe's market capitalization weighted S  P 500 portfolio. We proceed to consider the MaxMedian rule, a nonproprietary rule which was designed for the investor who wishes to do his/her own investing on a laptop with the purchase of only 20 stocks. Shockingly, the rule beats equal weight by a factor of 1.24 and posts annual returns that exceed even those once allegedly promised by Bernie Madoff .
We empirically show the superiority of the equally weighted S \& P 500 portfolio over Sharpe's market capitalization weighted S \& P 500 portfolio. We proceed to consider the MaxMedian rule, a non-proprietary rule designed for the investor who wishes to do his/her own investing on a laptop with the purchase of only 20 stocks. Rather surprisingly, over the 1958-2016 horizon, the cumulative returns of MaxMedian beat those of the equally weighted S\&P 500 portfolio by a factor of 1.15 .
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power
superiority
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nonproprietary rule which was
non-proprietary rule
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Shockingly, the rule beats equal weight
Rather surprisingly, over the 1958-2016 horizon, the cumulative returns of MaxMedian beat those of the equally weighted S\&P 500 portfolio
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1.24 and posts annual returns that exceed even those once allegedly promised by Bernie Madoff
1.15