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

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability, leading to inequality and social tension.

Federal Government

The national government of a federation, responsible for enacting and enforcing laws applicable throughout the entire country.

State-grants

State grants are financial awards provided by state governments to individuals, organizations, or other state entities to support various projects, activities, or needs without any expectation of repayment.