Which of the following is not a reason why the majority of actively managed mutual funds underperform the averages? All of the responses are reasons. Significant expenses associated with actively managed funds to support analysts, portfolio managers, and other overhead costs as well as trading costs to shift investment holdings: Mutual funds frequently keep 5 percent or more in cash for such reasons as meeting unusually larger redemptions- The relative performance between categories does not differ substantially over extended periods of time. Fund overhead expenses including direct management fees can provide benefits other than performance