Studies of the performance of professionally managed mutual funds find that these funds:

Question

Quizplus · Accepted Answer

Studies have shown that professionally managed mutual funds do not outperform a market index. If they did outperform, it would suggest that the market is not efficient in the semi-strong form as mutual fund managers would have access to public information and be able to use it to beat the market consistently. However, the fact that they do not outperform suggests that the market is semi-strong efficient as mutual fund managers cannot use public information to gain an advantage over the market. Therefore, the correct answer is B.

Studies of the Performance of Professionally Managed Mutual Funds Find