Asked by Alvin P. Davis on May 27, 2024
Verified
Actively managed mutual funds usually fail to outperform index funds, and this fact provides evidence in favor of the efficient markets hypothesis.
Actively Managed
Refers to investment funds where portfolio managers make specific investments with the goal of outperforming an investment benchmark index.
Mutual Funds
Investment programs funded by shareholders that trade in diversified holdings and are managed by professional investment managers.
Index Funds
Index Funds are mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.
- Perceive the directions of mutual fund performance and their importance for crafting investment strategies.
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Learning Objectives
- Perceive the directions of mutual fund performance and their importance for crafting investment strategies.
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