Which of the Following Statements About the Mutual-Fund Theorem Is

question 29

Multiple Choice

Which of the following statements about the mutual-fund theorem is true? I) It is similar to the separation property.
II) It implies that a passive investment strategy can be efficient.
III) It implies that efficient portfolios can be formed only through active strategies.
IV) It means that professional managers have superior security-selection strategies.

• A)I and IV
• B)I, II, and IV
• C)I and II
• D)III and IV

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