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:

Competitive Differentiation

The unique value a product or service provides in a market that sets it apart from its competitors.

Product Placement

A marketing strategy that involves placing branded products or advertisements within the content of media.

Brand Popularity

Brand popularity refers to the widespread recognition and positive perception of a brand among consumers, often resulting in increased loyalty and sales.

Early Majority

A segment of the population that adopts new products or innovations after the initial group of early adopters, characterized by a more pragmatic approach to adoption.