An Active Fund Manager Realises He or She Cannot Beat

question 10

True/False

An active fund manager realises he or she cannot beat the market and therefore adopts a strategy of seeking to track the market index.

---

Definitions:

Expected Total Utility

The sum of satisfaction or benefit that an individual expects to receive from consuming goods or services.

Probability

A measure of the likelihood of a particular event occurring, often expressed as a fraction or percentage.

Expected Income

The amount of money one anticipates receiving over a certain period, taking into account various income sources and factors.

Probability

The likelihood of a particular event or outcome occurring, often expressed as a fraction, percentage, or a ratio.