Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually
A)beat the market in the next time period.
B)beat the market in the next two subsequent time periods.
C)beat the market in the next three subsequent time periods.
D)do not beat the market in the next time period.

Question

Quizplus · Accepted Answer

Studies have shown that there is little persistence in mutual fund performance, meaning that a fund that outperforms the market in one time period is not likely to outperform the market in the next time period. Therefore, D is the correct answer as it states that mutual funds do not beat the market in the next time period.

Studies of Mutual Fund Performance Indicate That Mutual Funds That