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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Definitions:

Capital Inputs

The goods or services used to produce other goods or services, particularly those which are fixed like machinery or buildings versus labor.

Interest Rate

The cost of borrowing money, typically expressed as an annual percentage of the principal.

Renewal Price

Renewal price refers to the price at which a service, contract, or subscription can be renewed after the initial term ends.

Mortality Rate

A measure of the number of deaths in a particular population, scaled to the size of that population per unit of time.