According to the theory of efficient markets, which of the following correctly c

Question

According to the theory of efficient markets, which of the following correctly completes the this statement: Mutual fund managers may be expected to earn a) above-average returns if they are smarter than the average investor. b) above-average profit by using technical analysis c) higher average returns than selecting by throwing darts at the financial page. d) equal average returns to selecting by throwing darts at the financial page. e) above-average returns if they take on less risk. f) lower average returns than selecting by throwing darts at the financial page. g) above-average profit by using early information from the company h) above-average profit by using CEO Financial analysts' published recommendations i) above-average profit by using hot tips from CNBC business news j) above-average returns if they have access to illegal, private information. k) above-average returns if they have learned from investing in the same stocks repeatedly. l) above-average returns if they participate in efficient markets.

Explanation / Answer

Mutual fund managers may be expected to earn

a) above-average returns if they are smarter than the average investor

d) equal average returns to selecting by throwing darts at the financial page.

g) above-average profit by using early information from the company

h) above-average profit by using CEO Financial analysts' published recommendations

i) above-average profit by using hot tips from CNBC business news

above-average returns if they participate in efficient markets.

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