QUESTION 23

1. Managed equity funds provide investors with advantages over index mutual funds because:

a. They have lower operating costs.

b. Their portfolio performance is generally superior.

c. They engage in more complete research.

d. None of the above.

QUESTION 24

1. In comparison to their relevant index, most actively managed mutual funds:

a. Underperform the majority of the time.

b. Match their benchmark return the majority of the time.

c. Outperform during the majority of bear and bull markets.

d. Outperform during bull markets.