Active v.Passive Management CAPM implies that,on average,the performances of active portfolio managers is equal to that of passive managers employing just the market portfolio and the risk-free security Diligent managers do outperform passive managers,but only to the degree that their diligence is rewarded THE COURSE OF FINANCE 2017 SPRING SJTU 11Active v. Passive Management  CAPM implies that, on average, the performances of active portfolio managers is equal to that of passive managers employing just the market portfolio and the risk-free security  Diligent managers do outperform passive managers, but only to the degree that their diligence is rewarded THE COURSE OF FINANCE 2017 SPRING SJTU 11