Which One of the Following Statements Is Correct

question 60

Multiple Choice

Which one of the following statements is correct?

• A)Professional money managers outperformed the Vanguard 500 Index Fund on an annual basis more than half the time for the period 1986-2014.
• B)Purchasing and holding a broad-based index fund is a highly recommended means of investing.
• C)The number of general equity mutual funds has decreased over the past 20 years due to their underperformance as compared to index funds.
• D)The survivorship bias lowers the returns earned by professional money managers as a group.
• E)In an efficient market, there is no need for professional money managers.

---

Definitions:

Messaging

The process of sending and receiving messages or communications, often through written or digital formats.

Real Time

Pertaining to systems or processes that operate or respond instantly, without noticeable delay.

Text-Based Messages

Communication that uses written words, often sent via digital platforms like email, text messaging, or social media.

Digital Audio

Sound that has been recorded, stored, or transmitted in a digital format, allowing for manipulation and distribution without degradation of quality.