Which of the following statements regarding Warren Buffett's wager with Protege Funds is most accurate?
A)The index fund is outperforming the hedge funds,thus supporting market efficiency.
B)The index fund is outperforming the hedge funds,thus countering market efficiency.
C)The index fund is underperforming the hedge funds,thus supporting market efficiency.
D)The index fund is underperforming the hedge funds,thus countering market efficiency.

Question

Quizplus · Accepted Answer

Warren Buffett made a wager with Protege Funds in 2007 that an S&P 500 index fund would outperform a portfolio of hedge funds over 10 years. The index fund has indeed outperformed the hedge funds, thus supporting the idea of market efficiency, as it suggests that it is difficult for investors to consistently outperform the market through stock-picking or market timing. Hence, option A is the most accurate statement.

Which of the Following Statements Regarding Warren Buffett's Wager with Protege