Question

Which of the following is correct? a. Managed funds typically have a higher return than indexed funds. This tends to refute the efficient market hypothesis. b. Managed funds typically have a higher return than indexed funds. This tends to support the efficient market hypothesis. c. Index funds typically have a higher rate of return than managed funds. This tends to refute the efficient market hypothesis. d. Index funds typically have a higher rate of return than managed funds. This tends to support the efficient market hypothesis.

Answer 1

The correct answer is letter D.

The index funds typically have a higher rate of return than managed funds, this tends to support the efficient market hypothesis.