Risk-Adjusted Mutual Fund Performance Measures Have Decreased in Popularity Because

question 4

Multiple Choice

Risk-adjusted mutual fund performance measures have decreased in popularity because

• A) in nearly efficient markets, it is extremely difficult for portfolio managers to outperform the market.
• B) the measures usually result in negative performance results for the portfolio managers.
• C) the high rates of return earned by the mutual funds have made the measures useless.
• D) in nearly efficient markets, it is extremely difficult for portfolio managers to outperform the market, and the measures usually result in negative performance results for the portfolio managers.
• E) None of the options are correct.

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Definitions:

Burden Of Proof

The obligation to prove one's assertion or claim in a legal dispute.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation that is designed to protect the public.

Res Ipsa Loquitur

A legal doctrine that allows an inference of negligence to be drawn from the very nature of an accident or injury, in the absence of direct evidence on how the defendant behaved.

Proximate Cause

A legal concept that determines whether the harm or damage sustained by an individual is directly related to an event or action, playing a significant role in determining liability.