The Fact That the Majority of Stock Mutual Funds Cannot

question 135

Multiple Choice

The fact that the majority of stock mutual funds cannot outperform the stock market averages is consistent with:

• A) the no free lunch principle.
• B) the risk-return trade-off principle.
• C) the efficient markets hypothesis.
• D) the active trading hypothesis.

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Definitions:

Accusing Tone

A manner of speaking or writing that implies blame or responsibility for a wrongdoing, often leading to a defensive response.

Writing Clearly

The practice of expressing ideas in a straightforward and easy-to-understand manner, avoiding ambiguity and complexity.

Negative Message

A communication that conveys a refusal, denial, or unfavorable information to the recipient.

Gain Acceptance

Gain acceptance means to receive approval or endorsement from others, often through persuasion or demonstration of value.