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:

Symbolic Actions

Acts or gestures that carry particular meanings or messages within a cultural or organizational context.

Dramatic Actions

Significant and bold moves taken to achieve an objective, often carrying high risk or impact.

Vision

A clear and inspirational long-term desired outcome that a person or organization aims to achieve.

Communicating

The process of conveying information, ideas, feelings, and thoughts through speech, writing, signals, or behavior to achieve effective understanding or action.