If the Efficient Market Hypothesis Is Correct,then

question 3

Multiple Choice

If the efficient market hypothesis is correct,then

• A)index funds should typically beat managed funds,and usually do.
• B)index fund should typically beat managed funds,but usually do not.
• C)mutual funds should typically beat index funds,and usually do.
• D)mutual funds should typically beat index funds,but usually do not.

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Definitions:

Opinion Statements

Expressions that communicate personal beliefs, views, or evaluations, rather than objective facts.

Material Representations

Statements or assertions of fact that significantly influence the decision-making of another party in a legal agreement.

Innocent Misrepresentations

False statements made without fault regarding a material fact that induce someone into a contract.

Punitive Damages

are monetary compensations awarded in a lawsuit as a punishment to the defendant and to deter future similar acts.