Long-Term Studies of a Mutual Funds' Performance Tend to Support

question 57

Multiple Choice

Long-term studies of a Mutual Funds' performance tend to support the statement that

• A) above average performers remain above average.
• B) investors can rely on past performance to forecast the future.
• C) investors should seek actively managed funds.
• D) the capital market is efficient.

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Definitions:

Sales

Transactions between buyers and sellers in which the ownership of goods or services is transferred in exchange for money.

Costs

The amount of money that needs to be spent to buy, do, or make something.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Expectations

The beliefs or forecasts about future events affecting economic decisions and behaviors.