1. Which statement is consistent with the efficient markets hypothesis? A. No one can earn...

1. Which statement is consistent with the efficient markets hypothesis?
   A.   No one can earn a return in the stock market.
   B.   No mutual funds can outperform stock composite indexes at any time.
   C.   The majority of stock mutual funds cannot outperform stock composite indexes.
   D.   Technical analysis is the only way to beat the market over time.

2. Which statement is TRUE?
   A.   One can earn higher returns by investing in funds with high loading costs.
   B.   Passive investments underperform active investments.
   C.   In the long run, stock returns are higher than bond returns.
   D.   The efficient markets hypothesis only holds in the short run.

3. Financial returns on houses are _______ over long periods of time because part of the return on housing is from ________.

Expert Solution

Rahul Sunny answered 2 years ago

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