Given the vast resources available to mutual fund managers,these managers on average have generally
A)outperformed the overall market on a risk-adjusted basis.
B)eliminated excess profits for arbitrageurs.
C)beat broad-based indexes.
D)proved the market to be strong form efficient.
E)underperformed the market on a risk-adjusted basis.

Question

Quizplus · Accepted Answer

Despite having vast resources available to them, on average, mutual fund managers have underperformed the market on a risk-adjusted basis. This is known as the "active management paradox" and has been consistently observed in empirical studies.

Given the Vast Resources Available to Mutual Fund Managers,these Managers