Studies have shown that indexed funds can produce higher returns than managed funds; this is evidence in support of:

Question

Quizplus · Accepted Answer

This evidence supports the efficient-markets hypothesis, which suggests that it is difficult for active managers to consistently outperform the market over the long term. Indexed funds, which track a market index rather than relying on active management, tend to have lower fees and therefore higher returns over time.

Studies Have Shown That Indexed Funds Can Produce Higher Returns