Which of the Following Statements Are Correct

question 43

Multiple Choice

Which of the following statements are correct?
I.Many professional fund managers are paid well but fail to outperform as expected.
II.Professional fund managers that have tenures in excess of ten years,tend to consistently outperform the market on a long-term basis.
III.If a market is truly efficient,then all investments in that market are zero net present value opportunities.
IV.Actively managing a fund appears to be the key to outperforming the market.

• A)I and III only
• B)II and IV only
• C)II and III only
• D)I, II, and III only
• E)I, II, III, and IV

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Definitions:

Solomon Asch

A psychologist known for his research on conformity, including the famous Asch conformity experiments.

Stanford Prison Study

A psychological experiment conducted in 1971 by Philip Zimbardo at Stanford University, exploring the effects of perceived power, focusing on the struggle between prisoners and prison officers.

Prisoners

Individuals who are confined within a prison or jail as a result of committing a crime.

The Big Lie

A propaganda technique, involving the repeated assertion of a significant falsehood with the goal of making people believe it is true.