Studies of Mutual Fund Performance Indicate That Mutual Funds That

question 24

Multiple Choice

Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually

• A)beat the market in the next time period.
• B)beat the market in the next two subsequent time periods.
• C)beat the market in the next three subsequent time periods.
• D)do not beat the market in the next time period.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group.

Self-fulfilling Prophecies

Predictions that directly or indirectly cause themselves to become true, due to positive feedback between belief and behavior.

Actor-observer Bias

A cognitive bias where individuals attribute their own actions to external factors, while they attribute others' actions to internal traits or characteristics.

Positive Stereotypes

Stereotypes that attribute positive attributes to a group, which, despite being favorable, can still have negative consequences and reduce individuality.