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Question 3 0.5 pts Berk's (2005) model provides a framework explains how investors choose funds to invest with and how funds perform over time. Which

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Question 3 0.5 pts Berk's (2005) model provides a framework explains how investors choose funds to invest with and how funds perform over time. Which of the following statements is incorrect? The model shows that the returns of the best fund will eventually underperform the benchmark, and the returns of the worst fund will eventually outperform the benchmark. The model shows that investors use past fund performance to judge future fund performance. The model shows that the best fund manager has the highest capital invested with them The model shows that there is an optimal fund size beyond which fund performance decreases. The model shows that skills are valued in the funds management industry

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