A Key Reason That Actively Managed Funds Have Lower Returns

question 81

Multiple Choice

A key reason that actively managed funds have lower returns than index funds with a similar level of risk is that

• A) index funds require more buying and selling to generate their returns.
• B) management and trading costs reduce the returns of actively managed funds.
• C) index funds spend more on research and management.
• D) diversification is more important to actively managed funds.

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The selection of the best or appropriate moment to perform an action in order to achieve desired effect or outcome.

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The state or period of being a grandparent, experiencing the relationship with one's child's offspring.