Investors holding a diversified portfolio will earn a


Circle True or False for the following.

a. If markets follow the weak form of market efficiency, skilled managers using fundamental analysis should be able to consistently outperform the S&P 500 over time.-----True or False

b. Assume markets are semi-strong efficient. About 60% of the 5000+ fund managers consistently underperform the S&P 500 net of fees and transaction costs. The 40% that outperform must have used insider information to achieve such better.-----True or False

c. In the strong-form, it’s impossible for stock managers to outperform the S&P 500 in any given year.-----True or False

d. If markets are semi strong efficient, then only the smartest and most skilled fundamental analysts would be able to find bargains and outperform the S&P 500 over time.------True or False

e. Investors holding a diversified portfolio will earn a return commensurate with the portfolio’s total risk.------True   False

f. If markets follow the weak form of market efficiency, then all mutual fund managers will outperform the S&P 500. ---------True or False

g. Microsoft, Apple, Google & Facebook have delivered returns in excess of their CAPM return over time. This is a violation of EMH. ------True or False

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Investors holding a diversified portfolio will earn a
Reference No:- TGS02738359

Expected delivery within 24 Hours