Mutual Fund Performance Studies Have Shown That Most Funds

question 6

Multiple Choice

Mutual fund performance studies have shown that most funds

• A) have risks and returns that are inconsistent with their stated objectives.
• B) have risks and returns that are consistent with their stated objectives.
• C) do not have stated objectives.
• D) have experienced risk-adjusted returns above the market.
• E) have changed their objectives over time.

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Definitions:

Standard Deviation

A metric that calculates how much a dataset's values deviate or spread out from the average.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter, expressed at a certain confidence level.

Mean

The mean of a collection of numbers, found by summing up all values and then dividing by the total count of those values.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.