Even though indexing is growing in popularity only about _____ of equity in the mutual fund industry is held in indexed funds.This may be a sign that investors and managers __________.
A) 5%; are excessively conservative
B) 10%; overestimate their ability
C) 15%; suffer from framing biases
D) 20%; engage in mental accounting

Question

Quizplus · Accepted Answer

The fact that only about 10% of equity in the mutual fund industry is held in indexed funds suggests that investors and managers overestimate their ability to outperform the market and may be too confident in their stock-picking abilities.

Even Though Indexing Is Growing in Popularity Only About _____