The Performance of Index Funds

question 279

Multiple Choice

The performance of index funds

• A) is seldom,if ever,superior to the performance of actively-managed funds.
• B) provides evidence in support of the notion that stock prices do not depend upon supply and demand.
• C) provides evidence in support of the efficient markets hypothesis.
• D) provides evidence in support of the notion that stock-market participants are irrational.

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Definitions:

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem-solving, and controlling behavior.

Fine Movements

Precise physical actions involving small muscle groups, often requiring high levels of coordination and control, such as writing or tying a shoelace.

Primary Motor Cortex

The region of the brain responsible for the generation of neural impulses controlling voluntary muscle movements.

Fine Movements

Precise, controlled movements that require small muscle coordination, such as writing with a pencil or threading a needle.