"Active Investment Management May Generate Additional Returns at Times of About

Multiple Choice

"Active investment management may generate additional returns at times of about 0.1%.However,the standard deviation of the typical well diversified portfolio is about 20%,so it is very difficult to statistically identify any increase in performance." Even if true,this statement is an example of the _________ problem in deciding how efficient the markets are.

A) magnitude
B) selection bias
C) lucky event
D) allocation