Del Guerico and Reuter (2014) report that the average underperformance of actively-managed mutual funds is driven largely by
A) sector mutual funds.
B) index funds.
C) direct-sold funds.
D) broker-sold funds.
E) bank-sold mutual funds.

Question

Quizplus · Accepted Answer

Del Guerico and Reuter (2014) found that the average underperformance of actively-managed mutual funds is largely attributed to broker-sold funds. This is because broker-sold funds often have higher fees due to the sales commissions paid to brokers, which can significantly impact the net returns to investors.

Del Guerico and Reuter (2014) Report That the Average Underperformance