Given the vast resources available to mutual fund managers,these managers on average have generally
A)outperformed the overall market on a risk-adjusted basis.
B)eliminated excess profits for arbitrageurs.
C)beat broad-based indexes.
D)proved the market to be strong form efficient.
E)underperformed the market on a risk-adjusted basis.

Question

Quizplus · Accepted Answer

Despite the vast resources available to mutual fund managers, on average they have underperformed the market on a risk-adjusted basis. Studies have shown that a majority of mutual fund managers fail to beat broad-based indexes over the long-term, highlighting the difficulty of consistently outperforming the market through stock-picking and active management.

Given the Vast Resources Available to Mutual Fund Managers,these Managers