The Bulk of Empirical Evidence on Mutual Fund Returns Suggests

question 20

Multiple Choice

The bulk of empirical evidence on mutual fund returns suggests that

• A)there are some proven superior fund managers, and investors should try to invest in funds that have produced superior results over the last three years.
• B)superior performance is due more to luck than to the superior analytical ability of a fund manager.
• C)the past performance of a fund cannot be used to predict how it will perform in the future.
• D)Both B and C are true statements.

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