The difference between the performances of two equity mutual funds during a particular period may be attributed to ________ rather than to the ________.

Question

Quizplus · Accepted Answer

The sector in which the fund is investing has a significant impact on its performance, along with the skills of the manager. Interest rates and dividend returns may also play a role, but the sector and manager's abilities are typically the primary factors. "Some good news" is too vague and cannot be considered a likely contributing factor.

The Difference Between the Performances of Two Equity Mutual Funds