Which of the Following Is Correct

question 44

Multiple Choice

Which of the following is correct?

• A)Managed funds typically have a higher return than indexed funds.This tends to refute the efficient market hypothesis.
• B)Managed funds typically have a higher return than indexed funds.This tends to support the efficient market hypothesis.
• C)Index funds typically have a higher rate of return than managed funds.This tends to refute the efficient market hypothesis.
• D)Index funds typically have a higher rate of return than managed funds.This tends to support the efficient market hypothesis.

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Definitions:

Normal Curve

A symmetrical, bell-shaped curve representing the distribution of a set of data where most measurements are close to the average.

Symmetry

The property of being made up of exactly similar parts facing each other or around an axis; often evaluated in statistical data sets.

Normal Distribution

A symmetrical, bell-shaped distribution of data wherein most observations cluster around the central peak and probabilities for values taper off equally in both directions.

Mean

The arithmetic average of a set of values, calculated by summing all the values and then dividing by the number of values.