It is difficult for an actively managed investment f... - Solved MCQs & Answer

2861EconomicsMedium

It is difficult for an actively managed investment fund to outperform an index fund because?

Astock markets tend to be inefficient

Bindex funds are able to buy undervalued stocks

Cactively managed funds trade more often and charge fees for their alleged expertise

Dall of these answers

Correct answer

C. actively managed funds trade more often and charge fees for their alleged expertise

Explanation

The correct answer is actively managed funds trade more often and charge fees for their alleged expertise.

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