If the Efficient Market Hypothesis Is Correct,then

question 3

Multiple Choice

If the efficient market hypothesis is correct,then

• A)index funds should typically beat managed funds,and usually do.
• B)index fund should typically beat managed funds,but usually do not.
• C)mutual funds should typically beat index funds,and usually do.
• D)mutual funds should typically beat index funds,but usually do not.

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Information or data that can be seen, measured, or noted directly, without the need for inference.

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General principles or ideas used to explain how certain aspects of the natural or social world operate.

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Mental shortcuts or 'rules of thumb' that simplify decision making, often at the cost of accuracy or thoroughness.

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