If the Efficient Market Hypothesis Is Correct,then

question 3

Multiple Choice

If the efficient market hypothesis is correct,then

• A)index funds should typically beat managed funds,and usually do.
• B)index fund should typically beat managed funds,but usually do not.
• C)mutual funds should typically beat index funds,and usually do.
• D)mutual funds should typically beat index funds,but usually do not.

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Definitions:

Common Ground

Shared interests, beliefs, or understanding that allows different parties to find agreement or mutual respect.

Simple Language

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Shared Beliefs

Values or opinions held in common by a group of people, which often form the basis of collective action or culture.

Evidence

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