Articles (5)

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  • Mark Hebner and IFA Contributors

    The Gambler's Fallacy and the Misuse of the Law of Large Numbers

    21,377
    by Mark Hebner and Murray Coleman — Updated: Monday, June 3, 2019

    If you have ever spent any time in a casino, it is likely that you have seen supposedly random events that appeared to be non-random. Perhaps the roulette wheel came up red seven times in a row, for example. If your reaction was to place a large bet on ...Read More

  • Mark Hebner and IFA Contributors

    Profitability and a Four-Factor Model

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    by Mark Hebner and IFA Contributors — Updated: Tuesday, May 21, 2019

    When constructing or evaluating a domestic equity portfolio, Index Fund Advisors has traditionally utilized the three-factor asset pricing model that Professors Eugene Fama and Ken French introduced1 in 1993. This model states that the expected return of a broadly diversified ...Read More

  • jackson

    The Uncommon Average

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    by Dimensional Fund Advisors — Tuesday, January 23, 2018

    “I have found that the importance of having an investment philosophy—one that is robust and that you can stick with— cannot be overstated.” – David Booth The US stock market has delivered an average annual return of around 10% since 1926.[1] ...Read More