Most professionally managed equity funds generally
A)outperform the S&P 500 Index on both raw and risk-adjusted return measures.
B)underperform the S&P 500 Index on both raw and risk-adjusted return measures.
C)outperform the S&P 500 Index on raw return measures and underperform the S&P 500 Index on risk-adjusted return measures.
D)underperform the S&P 500 Index on raw return measures and outperform the S&P 500 Index on risk-adjusted return measures.

Question

Quizplus · Accepted Answer

Numerous studies show that the majority of professionally managed equity funds underperform the S&P 500 Index on both raw and risk-adjusted return measures, after taking into account their fees and expenses. While there are always exceptions and some funds may outperform the index, the overall performance of the group is generally poor.

Most Professionally Managed Equity Funds Generally