Studies of mutual-fund performance
A) indicate that one should not randomly select a mutual fund.
B) indicate that historical performance is not necessarily indicative of future performance.
C) indicate that the professional management of the fund insures above market returns.
D) indicate that one should not randomly select a mutual fund and indicate that historical performance is not necessarily indicative of future performance.
E) indicate that historical performance is not necessarily indicative of future performance and indicate that the professional management of the fund insures above market returns.

Question

Quizplus · Accepted Answer

Studies of mutual-fund performance generally show that randomly selecting a mutual fund is not advisable because past performance does not guarantee future results. Additionally, while professional management aims for above-market returns, there's no assurance of achieving this, making option D the most comprehensive and accurate choice without implying guaranteed above-market returns.

Studies of Mutual-Fund Performance