Evidence by Blake, Elton, and Gruber indicates that, on average, actively managed bond funds ________.
A) outperform passive fixed-income indexes
B) underperform passive fixed-income indexes by a wide margin
C) perform as well as passive fixed-income indexes
D) underperform passive fixed-income indexes by an amount equal to fund expenses

Question

Quizplus · Accepted Answer

Blake, Elton, and Gruber's evidence suggests that actively managed bond funds generally underperform passive fixed-income indexes by an amount equal to fund expenses.

Evidence by Blake, Elton, and Gruber Indicates That, on Average