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

question 68

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
• E) II and IV

---

Definitions:

Electric Assist System

A system within a vehicle designed to provide supplementary power to assist the driver, often used in steering or braking systems.

Socket

A tool or device into which something else is inserted, often used to refer to a wrench part that fits over a nut or bolt head.

Stud

A type of fastener that is threaded on both ends; one end is screwed into a tapped hole and the other end typically holds a nut.

Tie-Rod Ends

Components of the steering system that connect the tie rods to the steering knuckles, allowing for the transfer of motion.