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Based on the residual plot below, you will conclude that there might be a violation of which of the following assumptions?
Actively-managed Mutual Funds
Mutual funds where managers actively make investment decisions in an attempt to outperform a specific benchmark.
Underperformance
A return on an investment that is lower than the benchmark or expectations.
Direct-sold Funds
Direct-sold funds are mutual funds or similar investment vehicles that are offered directly to investors by the managing company, without the need for a financial advisor or broker.
Risk Premium
The extra return expected by an investor for holding a higher-risk investment over a risk-free asset.
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