Studies of the Performance of Professionally Managed Mutual Funds Find

question 9

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 does not refute 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.

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Definitions:

Positive Affect

A psychological concept referring to the expression of positive emotions or feelings such as happiness, joy, and excitement.

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