Which One of the Following Statements Is Correct

question 60

Multiple Choice

Which one of the following statements is correct?

• A)Professional money managers outperformed the Vanguard 500 Index Fund on an annual basis more than half the time for the period 1986-2014.
• B)Purchasing and holding a broad-based index fund is a highly recommended means of investing.
• C)The number of general equity mutual funds has decreased over the past 20 years due to their underperformance as compared to index funds.
• D)The survivorship bias lowers the returns earned by professional money managers as a group.
• E)In an efficient market, there is no need for professional money managers.

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Definitions:

Physical Examination

A medical assessment involving a series of systematic checks performed by a healthcare provider to evaluate the body's condition and detect possible diseases.

Hepatitis B

A serious liver infection caused by the hepatitis B virus (HBV) that can become chronic and lead to liver failure, cancer, or cirrhosis.

Vaccine

A biological preparation that provides active acquired immunity to a particular infectious disease by stimulating the body's immune system.

Vaccines

Biological preparations that provide acquired immunity to a particular infectious disease by stimulating the body's immune response.