Which of the Following Is Correct

question 44

Multiple Choice

Which of the following is correct?

• A)Managed funds typically have a higher return than indexed funds.This tends to refute the efficient market hypothesis.
• B)Managed funds typically have a higher return than indexed funds.This tends to support the efficient market hypothesis.
• C)Index funds typically have a higher rate of return than managed funds.This tends to refute the efficient market hypothesis.
• D)Index funds typically have a higher rate of return than managed funds.This tends to support the efficient market hypothesis.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Periodic Inventory System

An inventory system in which the inventory count and cost of goods sold calculation are performed at specific intervals, typically at the end of an accounting period.

FIFO

FIFO, which stands for "first in, first out," is an inventory valuation method where the first items placed in inventory are the first ones sold. This approach aims to mirror the actual flow of goods.

Ending Inventory Cost

The total value of all the goods a company has in stock at the end of a financial period, calculated using one of several accounting methods.