Sidea [2009], who works as editor of the magazine Veckans Aff?rer, argues that traditional active funds management is built on the management's analysis to figure out and invest in stocks which are underpriced. Considering this, these strategies are built on expectations which may be quite different from each other. This relatively expansive sort of active management needs a high degree of analyst competence, forecast making and trading which involve clearly high costs.
This book presents an overview about passive Index-Tracking Strategies as well as an empirical application. The reader will be able to understand the discussed methods and be able to construct strategies of their own, too. Apart from traditional strategies, Klaus Grobys presents the application of more sophisticated models based on cointegration theory as well as a new Pricing model, introduced in his academic final thesis at the University of Kiel.]]>