Question

Strong-form efficiency implies that mutual fund managers should A. buy the index that maximizes diversification and...

Strong-form efficiency implies that mutual fund managers should

A. buy the index that maximizes diversification and minimizes the cost of managing portfolios

B. actively seek underperforming stocks and buy them

C. generally earn superior returns each year

D. attempt to earn superior returns by using technical analysis

Homework Answers

Answer #1

Ans A. buy the index that maximizes diversification and minimizes the cost of managing portfolios

Strong-form efficiency implies that mutual fund managers should buy the index that maximizes diversification and minimizes the cost of managing portfolios. Strong form efficiency is the most stringent version of the efficient market hypothesis investment theory. It states that all information in a market whether public or private is accounted for in a stock's price.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT