Studies of the Performance of Professionally Managed Mutual Funds Find

question 28

Multiple Choice

Studies of the performance of professionally managed mutual funds find that these funds:

• A) Do not outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding refutes the semi-strong form of the efficient market hypothesis.
• B) Do not outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding supports the semi-strong form of the efficient market hypothesis.
• C) Outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding refutes the semi-strong form of the efficient market hypothesis.
• D) Outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding supports the semi-strong form of the efficient market hypothesis.

Identify and evaluate the qualities that contribute to a person being considered a trusted expert.

Distinguish between different types of claims (e.g., self-contradictory, tautological) and understand their validity.

Recognize the significance of evidence and reasons in supporting claims.

Understand the importance of being unbiased and truthful for trustworthiness.

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Definitions:

Tertiary Chloride

A compound featuring a chloride ion (Cl-) attached to a carbon atom, which in turn is connected to three other carbon atoms.

Primary Chloride

A chloride compound where the chlorine atom is bonded to a carbon atom that is itself bonded to no more than one other carbon atom.

Secondary Chloride

An organic compound where the chloride ion (Cl-) is attached to a carbon atom that is itself directly bonded to exactly two other carbon atoms, typically more reactive than tertiary chlorides.

Isopropyl Iodide

An organic compound with the formula (CH3)2CHI, used as an alkylating agent in organic synthesis.