Most Actively-Managed Mutual Funds, When Compared to a Market Index

question 34

Multiple Choice

Most actively-managed mutual funds, when compared to a market index such as the Wilshire 5000,

• A) beat the market return in all years.
• B) beat the market return in most years.
• C) exceed the return on index funds.
• D) do not outperform the market.

---

Definitions:

Attribution Process

The mental operation individuals go through to explain the causes of behavior and events, including their own and others'.

Grades

Levels or steps within a hierarchical evaluation system, typically used to assess performance, quality, or rank.

Attributional Errors

Cognitive biases that occur when one incorrectly attributes the cause of a behavior or event to the wrong source, often leading to misunderstandings.

Work Setting

The physical and social environment in which a person performs their job.