Studies of the Performance of Professionally Managed Mutual Funds fiNd

question 11

Multiple Choice

Studies of the performance of professionally managed mutual funds find that these funds:

• A)do not outperform a market index.Assuming mutual fund managers rely primarily on
• Public information, this finding refutes the semistrong form of the efficient market
• Hypothesis.
• B)do not outperform a market index.Assuming mutual fund managers rely primarily on
• Public information, this finding supports the semistrong form of the efficient market
• Hypothesis.
• C)outperform a market index.Assuming mutual fund managers rely primarily on public
• Information, this finding refutes the strong form of the efficient market hypothesis.
• D)outperform a market index.Assuming mutual fund managers rely primarily on public
• Information, this finding supports the semistrong form of the efficient market hypothesis.
• E)Both C and D.

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Definitions:

Histamine

A compound released by cells in response to injury and in allergic and inflammatory reactions, causing contraction of smooth muscle and dilation of capillaries.

Prostaglandins

A group of lipid compounds that are derived enzymatically from fatty acids and have important functions in the body, including in inflammation and as hormone-like messengers.

Neutrophils

A type of white blood cell and the most abundant type of granulocyte, playing a vital role in defending the body against infections by ingesting pathogens.

Macrophages

Large white blood cells that ingest and destroy pathogens, dead cells, and cellular debris.