(Last Word) Before trading costs and management fees are taken into account, passively managed funds outperform actively managed funds by about ______ percent per year.
A) 5
B) 1
C) zero
D) 3

Question

Quizplus · Accepted Answer

Passively managed funds typically aim to match the market index performance, while actively managed funds try to outperform it. Before costs, both types of funds should theoretically perform similarly, resulting in a zero percent difference.

(Last Word) Before Trading Costs and Management Fees Are Taken