Based on the Efficient Markets Hypothesis, Which of the Following

question 81

Multiple Choice

Based on the efficient markets hypothesis, which of the following mutual funds has the better chance of beating the market in the long run?

• A) a low-fee fund that is actively managed by a highly respected fund manager
• B) a passive fund that simply attempts to mimic a financial index such as the S&P 500
• C) a portfolio of stocks that you choose, since nobody has more incentive to manage your money correctly than you do
• D) Forget about it-it is nearly impossible to choose a fund that will systematically outperform the market.

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Definitions:

Consumers

Individuals or groups that purchase or have the potential to purchase goods and services for personal use.

Eco-efficiency

An approach that focuses on reducing ecological impact while maximizing resource efficiency and productivity.

Environmental Impact

The effect or influence of human activities on the natural environment, including factors like pollution, habitat destruction, and climate change.

Marketing Strategy

A company's comprehensive plan for promoting and selling its products or services, combining market research, product development, promotion, and distribution to reach its target market effectively.