Question
Warren Buffett made a bet that an index fund tracking the S&P 500 would outperform a portfolio of hedge funds selected by an active manager.
Warren Buffett made a bet that an index fund tracking the S&P 500 would outperform a portfolio of hedge funds selected by an active manager. The S&P 500 index fund has returned 66% while the hedge funds have returned 22%. What does this say about the efficient market hypothesis (EMH)?
Group of answer choices
The fact that a passive investment strategy is outperforming an active management strategy supports the EMH.
The fact that a passive investment strategy is outperforming an active management strategy provides evidence against the EMH.
The fact that an active management strategy is outperforming a passive investment strategy supports the EMH.
The fact that an active management strategy is outperforming a passive investment strategy provides evidence against the EMH.
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