One primary reason for the long-term average performance of mutual funds in general is:
A)inflation.
B)high transaction costs.
C)volatile stock market conditions.
D)None of the above

Question

Quizplus · Accepted Answer

One primary reason for the long-term average performance of mutual funds in general is high transaction costs. What the Ippolito article suggests is that mutual funds are efficient gatherers of information and that, on average, they use the information well in their investment activities. However, there are costs associated with acquiring this information, and wise use of the information covers the cost of its acquisition.

One Primary Reason for the Long-Term Average Performance of Mutual