Strong-Form Efficiency Implies That Mutual Fund Managers

question 30

Multiple Choice

Strong-form efficiency implies that mutual fund managers:

• A) Buy the index that maximizes diversification and minimizes cost of managing portfolios
• B) Actively seek under performing stocks and buy them
• C) Fund mangers can consistently earn superior returns year after year
• D) None of the above

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Definitions:

Spatial Location

The specific coordinates or position of an object or place in space.

Motor Control

The process by which humans and animals use their brain and muscular system to activate and coordinate the movements of their muscles and limbs.

Amygdala

A part of the brain's limbic system involved in emotion, decision-making, and memory processing.

Emotional Awareness

The ability to recognize and understand one's own emotions and the emotions of others.