The Money Paradox: Why More Wealth Doesn't Always Equal More Happiness
Pirates of Finance
00:00
The Differences Between Market Cap Weighted and Float Adjusted Market Cap
The S&P 500 is float-weighted, but it's actually market cap weighted. The idea basically being by focusing on company fundamentals, you avoid pure bubble stocks. But weirdly enough, and this is where it gets weird, when they run a car heart, Fama, French for factor model regression, explain the source of returns, they get this big alpha component. They just end up with this really good looking alpha.
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