Mutual funds show ____________ evidence of serial correlation, and hedge funds show ____________ evidence of serial correlation.
A) almost no; almost no
B) almost no; substantial
C) substantial; substantial
D) substantial; almost no
E) modest; modest

Question

Quizplus · Accepted Answer

Mutual funds generally show almost no evidence of serial correlation, meaning their returns are not significantly predictable from one period to the next. Hedge funds, on the other hand, often exhibit substantial evidence of serial correlation, suggesting that their returns can be somewhat predictable based on past performance.

Mutual Funds Show ____________ Evidence of Serial Correlation, and Hedge