Which statement is NOT true?
A) Portfolio managers should diversify investments.
B) The promise of higher returns is accompanied by higher risk.
C) A single investor can consistently beat the market over the long term.
D) Active stock markets are an important part of the economy.

Question

Quizplus · Accepted Answer

It is highly unlikely for a single investor to consistently beat the market over the long term. Professional portfolio managers with years of experience and sophisticated investment tools find it extremely challenging to consistently beat the market. Most investors should focus on diversification and passive investing strategies like index funds or ETFs.

Which Statement Is NOT True