Which One of the Following Statements Is Correct

question 25

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 1977-2011.
• 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:

Horizontal Integration

This strategy involves a company buying or merging with other companies in the same industry at the same stage of production.

Committee

A group that is designated to work on a special task on a continuing basis.

Project Team

A project team is a group of individuals with diverse skills and roles who are assembled to collaborate on achieving specific project goals within a defined timeline.

Cross-functional Team

A group of individuals from different departments or areas within an organization working together to achieve a common goal.