(Last Word) Before Being Adjusted for Costs

question 156

Multiple Choice

(Last Word) Before being adjusted for costs,

• A) actively managed funds outperform index funds.
• B) actively managed funds and index funds perform about the same.
• C) index funds outperform actively managed funds.
• D) arbitrage equalizes the average expected rates of return and beta levels on index and actively managed funds.

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Definitions:

Temperament

Biologically based tendency to feel or act in certain ways.

Characteristic Adaptation

Describes personality traits, motivations, and behaviors that are shaped by an individual's life experiences.

Personality Stability

Refers to the consistency of individual differences in thoughts, feelings, and behavior over time and across situations.

Age

A measure of the time someone or something has existed, often used as a determinant of the matureness or development stage.