Actively Managed Mutual Funds Usually Fail to Outperform Index Funds

question 152

True/False

Actively managed mutual funds usually fail to outperform index funds, and this fact provides evidence in favor of the efficient markets hypothesis.

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Definitions:

Social Norms

Implicit or explicit rules that a group of people follows, reflecting what is considered appropriate behavior within that group.

Deceitful Behavior

Actions that are intentionally dishonest or manipulative to gain an advantage or mislead others.

Monozygotic Twins

Twins that originate from a single fertilized egg, resulting in genetically identical offspring.

Concordance Rate

Probability that both twins will develop a disorder if one twin has the disorder.