Charles and Dina are building their portfolios. Charles purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Dina is not convin She buys shares in an index fund-a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio. Dina builds her portfolio based on the notion that: O The stock market exhibits informational efficiency. All stocks are overvalued. O Stock analysts can use fundamental analysis to identify undervalued stocks