Risk-adjusted mutual fund performance measures have decreased in popularity because
A)in nearly efficient markets it is extremely difficult for portfolio managers to outperform the market.
B)the measures usually result in negative performance results for the portfolio managers.
C)the high rates of return earned by the mutual funds have made the measures useless.
D)A and B.
E)none of the above.

Question

Quizplus · Accepted Answer

In nearly efficient markets, it's challenging for managers to outperform the market (A), and risk-adjusted measures often show negative results for managers (B).

Risk-Adjusted Mutual Fund Performance Measures Have Decreased in Popularity Because