Studies of mutual fund performance
A)indicate that one should not randomly select a mutual fund.
B)indicate that historical performance is not necessarily indicative of future performance.
C)indicate that the professional management of the fund insures above market returns.
D)A and B.
E)B and C.

Question

Quizplus · Accepted Answer

Studies of mutual fund performance show that randomly selecting a mutual fund is not a good idea because historical performance is not necessarily indicative of future performance. Additionally, professional management does not necessarily ensure above market returns. Therefore, both options A and B are true. However, since option C is incorrect, the answer is D.

Studies of Mutual Fund Performance