Multiple Choice
Given that markets are efficient,what is the most logical explanation of the fact that a portfolio manager can outperform the S&P 500 by 5% annually?
A) The manager is an expert stock selector.
B) The manager has relied on insider information.
C) Stocks do not follow a random-walk pattern.
D) The manager's results have not been adjusted for the riskiness of the portfolio.
Correct Answer:
Verified
Correct Answer:
Verified
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