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Basic Question 13 of 14
Studies or data on mutual fund performance versus market index performance find that ______
B. most mutual funds outperform the index. These findings refute the strong form of efficient market hypothesis.
C. mutual funds are bad investments.
D. mutual funds are riskless compared to the index.
E. most mutual funds underperform the index. These findings support the semi-strong form of efficient market hypothesis.
A. most mutual funds outperform the index. These findings refute the semi-strong efficient market hypothesis.
B. most mutual funds outperform the index. These findings refute the strong form of efficient market hypothesis.
C. mutual funds are bad investments.
D. mutual funds are riskless compared to the index.
E. most mutual funds underperform the index. These findings support the semi-strong form of efficient market hypothesis.
User Contributed Comments 11
| User | Comment |
|---|---|
| katybo | I heard that 30% of the portfolios managers beats his/her benchmark index...nice to know. |
| haarlemmer | You voliate the CFA regulations (no reasonable basis).hehe. in fact, they first measure their returns and try to find a fit benchmark which they could beat. |
| Masterkang | Over a 10-year period, only 10% of actively managed mutual fund beat the Market Index. Sources: Random Walk Down Wall Street (Malkiel), The little book of Common Sense Investing (Bogle) Does it prevent me from active investing? No! I wanna belong to the 10%... |
| moneyguy | I heard 30% of CFA candidates pass the exam... nice to know. |
| johntan1979 | I heard that 0% of the legends of investing has the CFA designation. |
| jonan203 | let's change that statistic johnnyboy! |
| ashish100 | ^^ I'm gonna beat both of these guys to it first. Remember the name! |
| Inaganti6 | How about you guys pass the exam first |
| khalifa92 | all this resolution will disappear soon. Despair is your friend. |
| kseeba17 | I'm sure everyone's gonna know the name 'ashish100' one day ^^ |
| khalifa92 | I will become the next gorge Soros, to catch em all is what I do best. |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
contrast weak-form, semi-strong-form, and strong-form market efficiency
explain the implications of each form of market efficiency for fundamental analysis, technical analysis, and the choice between active and passive portfolio management
CFA® 2024 Level I Curriculum, Volume 3, Module 3.