Henriksson (1984) found that, on average, betas of funds __________ during market advances.
A) increased very significantly
B) increased slightly
C) decreased slightly
D) decreased very significantly
E) did not change

Question

Quizplus · Accepted Answer

Portfolio betas should have a large value if the market is expected to perform well and a small value if the market is not expected to perform well; thus, these results reflect the poor timing ability of mutual fund managers.

Henriksson (1984) Found That, on Average, Betas of Funds __________