If a Mutual Fund Outperforms the Market in One Period,evidence

question 81

Multiple Choice

If a mutual fund outperforms the market in one period,evidence suggests that this fund is

• A)highly likely to consistently outperform the market in subsequent periods due to its superior investment strategy.
• B)likely to under-perform the market in subsequent periods to average its overall returns.
• C)not likely to consistently outperform the market in subsequent periods.
• D)not likely to outperform the market in any subsequent period.

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Definitions:

Lacunae

Small cavities within bone or cartilage tissue that house cells.

Compact Bone

The dense, hard outer layer of bone that gives it strength and structure.

Inner Layer

Refers to the innermost layer or lining of an organ or structure, such as the mucosa in the stomach or intestines.

Osteoblasts

Cells that specialize in the formation of new bone tissue.