(Last Word) Before Being Adjusted for Costs

question 156

Multiple Choice

(Last Word) Before being adjusted for costs,

• A) actively managed funds outperform index funds.
• B) actively managed funds and index funds perform about the same.
• C) index funds outperform actively managed funds.
• D) arbitrage equalizes the average expected rates of return and beta levels on index and actively managed funds.

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Definitions:

Big Five

A model proposing five major dimensions of personality, namely Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism, to capture the variability in humans' personality traits.

Oregon

A state in the Pacific Northwest region of the United States known for its diverse landscapes, from forests and mountains to farms and cities.

Vocational Interest Inventory

A psychological assessment tool designed to identify a person's preferences and interests in various careers and professions.

Holland Scales

A set of instruments designed to measure six personality types and match individuals with compatible careers.