Which One of the Following Statements Is Correct

question 57

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 1977-2009.
• 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:

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate personal characteristics when explaining others' behaviors.

Cognitive Rehearsal

A psychological technique involving the repeated mental practice of a desired behavior or response to improve real-life performance.

Long-Term Memory

A type of memory capable of storing information for extended periods, often throughout an individual's life.

Nodes

Points or intersections within a network where connections meet, often used to refer to individual elements or devices within a communication network.