Historical Returns Support Which One of the Following Statements

question 18

Multiple Choice

Historical returns support which one of the following statements?

• A)Financial markets are highly inefficient as suggested by behavioral finance.
• B)Professional money managers tend to outperform the Vanguard 500 index fund about 55 percent of the time on average.
• C)The longer the time span, the more apt a professional money manager is to outperform an index fund, such as the S&P 500.
• D)Historical data supports the statement that arbitrage is unlimited and results in a totally efficient market.
• E)The financial markets appear to be efficient because, on average, they outperform professional money managers.

---

Definitions:

Communication

The process of conveying information or expressing thoughts and feelings from one entity or group to another through verbal, non-verbal, or written mediums.

Mental Health Professionals

Trained experts who provide services for the treatment and management of psychological disorders and mental health issues.

Symptoms

Observable signs or indications of a disease or condition that are experienced by an individual.

Depression

A condition affecting mental wellness, identified by a constant feeling of sadness or a lack of enthusiasm for activities, significantly affecting one's day-to-day life.