Studies of Mutual Fund Performance Indicate That Mutual Funds That

question 44

Multiple Choice

Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period

• A) usually beat the market in the next time period.
• B) usually beat the market in the next two subsequent time periods.
• C) usually beat the market in the next three subsequent time periods.
• D) usually do not beat the market in the next time period.

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Definitions:

Investment Strategy

A plan designed to guide an investor's selection of an investment portfolio, typically based on goals, risk tolerance, and future needs for capital.

Liquidity

The ease with which an asset or security can be converted into cash without significantly affecting its market price.

Limited Liability Partnerships

A business structure that allows partners to have limited liabilities, which means they are not personally liable for the debts of the business.

Portfolio Composition

The breakdown of assets within an investment portfolio, classified by type, sector, risk, or other criteria.