A Comparison of Historical Performance of Mutual Funds and the S&P

question 41

Multiple Choice

A comparison of historical performance of mutual funds and the S&P 500 suggests that:

• A) most mutual funds consistently outperform the S&P 500.
• B) active funds consistently outperform the S&P 500, and passive funds consistently underperform the S&P 500.
• C) mutual funds outperform the S&P 500 when they are undervalued.
• D) mutual funds on average underperform the S&P 500 at least half of the time.

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