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NEW QUESTION: 1

A. Option D
B. Option C
C. Option B
D. Option A
Answer: A

NEW QUESTION: 2
The majority of empirical evidence indicates that
A. the gross and net returns on mutual funds tend to be significantly higher than those on buy-and-hold strategies.
B. the gross and net returns on mutual funds tend to be significantly lower than those on buy-and-hold strategies.
C. the gross returns on mutual funds tend to as good as or slightly better than those on buy-and-hold strategies, while the net returns on mutual funds tend to be slightly lower than those on buy-and-hold strategies.
D. the gross returns on mutual funds tend to as good as or slightly worse than those on buy-and-hold strategies, while the net returns on mutual funds tend to be significantly lower than those on buy-and- hold strategies.
E. the gross returns on mutual funds tend to be significantly better than those on buy-and-hold strategies, while the net returns on mutual funds tend to be about equal to those on buy-and-hold strategies.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Net returns (which take account for research and trading costs) have been about 1% lower on mutual funds than on buy-and-hold strategies. Because of these studies, index funds have grown in popularity.
Because index funds only imitate a broad market index, they have no research costs and minimal trading expenses.

NEW QUESTION: 3

A. Option C
B. Option A
C. Option B
D. Option D
Answer: C