Which of the Following Statements About the Mutual-Fund Theorem Is

Multiple Choice

Which of the following statements about the mutual-fund theorem is true? I) It is similar to the separation property.
II) It implies that a passive investment strategy can be efficient.
III) It implies that efficient portfolios can be formed only through active strategies.
IV) It means that professional managers have superior security-selection strategies.

A) I and IV
B) I, II, and IV
C) I and II
D) III and IV