Studies of the Performance of Professionally Managed Mutual Funds Find

question 61

Multiple Choice

Studies of the performance of professionally managed mutual funds find that these funds:

• A)do not outperform a market index.Assuming mutual fund managers rely primarily on public information,this finding supports the semistrong form of the efficient market hypothesis.
• B)do not outperform a market index.Assuming mutual fund managers rely primarily on public information,this finding refutes the semistrong form of the efficient market hypothesis.
• C)outperform a market index.Assuming mutual fund managers rely primarily on public information,this finding supports the semistrong form of the efficient market hypothesis.
• D)outperform a market index.Assuming mutual fund managers rely primarily on public information,this finding refutes the semistrong form of the efficient market hypothesis.
• E)Both C and D.

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Definitions:

Higher Incomes

Levels of earnings that exceed the average or median income for a particular region or demographic.

Lower Incomes

Lower Incomes refer to the earnings that fall below the average or median income levels within a specific area or population.

Proportional Income Tax

A tax system where the tax rate is constant, regardless of the income level; everyone pays the same percentage of their income.

Taxes

Compulsory financial charges imposed by a government on individuals, corporations, and transactions to fund public expenditures.