A Mutual Fund with a Beta of 1

question 64

Multiple Choice

A mutual fund with a beta of 1.1 has outperformed the S&P500 over the last 20 years.We know that this mutual fund manager _______________________.

• A) must have had superior stock selection ability
• B) must have had superior asset allocation ability
• C) must have had superior timing ability
• D) may or may not have outperformed the S&P500 on a risk adjusted basis

---

Definitions:

Job Insecurity

The fear or concern of losing one's job or facing employment instability.

Social Forces

The societal norms, cultural values, and structural factors that influence individual and group behaviors.

Economic Forces

Factors that affect the economic environment and include aspects like inflation, employment levels, and economic policies.

Role Overload

A stressful condition occurring when the demands and responsibilities of one's role exceed the individual's capacity to fulfill them.