- CFA Exams
- CFA Level I Exam
- Study Session 12. Equity Investments (1)
- Reading 38. Market Efficiency
- Subject 2. Forms of Market Efficiency
CFA Practice Question
Studies on mutual fund performance indicate that most mutual funds had ______.
A. higher returns than the benchmark portfolio after expenses
B. roughly the same returns as the benchmark portfolio after expenses
C. lower returns than the benchmark portfolio after expenses and roughly matched the benchmark portfolio before expenses
User Contributed Comments 4
| User | Comment |
|---|---|
| zzhumanov | who can explain pls? |
| Dannyl | Mutual Funds tend to contain a lot of the securities from the benchmark portfolio. |
| Inaganti6 | @dannyl it didn't say that. it said the performance/returns were matching. |
| 8738958 | @inaganti6, dannyl is right because mutual funds carry a number of stocks included in the benchmark, however mutual funds charge a fee for management where the benchmark is net of fees |