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.

Analyze the effects of changing output levels on marginal and average costs and their interrelationships.

Understand the concept of the short run in production and its implications for cost structures.

Recognize how firm decisions are influenced by cost behavior in the short run.

Understand the concept of economic profit and normal profit and how they differ from accounting profit.

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Definitions:

Eccentrics

Eccentrics are individuals whose behavior or beliefs deviate markedly from what is considered normal or conventional in their society.

Creative

The ability or quality of being inventive or imaginative, often leading to the creation of something new or original.

Frenetic, Manic Activity

Intense, high-energy behavior that may be erratic or hyperactive, often seen in mania.

Distress

Extreme anxiety, sorrow, or pain, often affecting a person’s mental or physical health.