Identify the correct statement regarding investment management approaches.
A)Active investment managers are advocates of the EMH.
B)Active portfolio managers pursue above-average returns through superior asset selection and timing decisions.
C)Active managers will form index funds.
D)Passive managers will try to outperform the market by picking 'winners'.
E)None of these.

Question

Quizplus · Accepted Answer

Active portfolio managers aim to beat the market by selecting superior assets and timing decisions. Option A is incorrect as active managers do not believe in the EMH. Option C is incorrect as index funds are typically formed by passive managers. Option D is also incorrect as passive managers do not try to outperform the market, they aim to match it.

Identify the Correct Statement Regarding Investment Management Approaches