Historical Returns Support Which One of the Following Statements

question 18

Multiple Choice

Historical returns support which one of the following statements?

• A)Financial markets are highly inefficient as suggested by behavioral finance.
• B)Professional money managers tend to outperform the Vanguard 500 index fund about 55 percent of the time on average.
• C)The longer the time span, the more apt a professional money manager is to outperform an index fund, such as the S&P 500.
• D)Historical data supports the statement that arbitrage is unlimited and results in a totally efficient market.
• E)The financial markets appear to be efficient because, on average, they outperform professional money managers.

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Definitions:

Suicidal Thoughts

Instances when an individual contemplates, considers, or plans suicide.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its effects on mood, perception, and behavior.

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, and sleep, among other functions.

Ecstasy

Often referring to MDMA (methylenedioxymethamphetamine), a psychoactive drug primarily used for recreational purposes to enhance sensations of emotional warmth and increased energy.