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Which of the following statements is correct? A. Investor returns are generally lower than reported fund returns due to transaction costs and management fees. B.

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Which of the following statements is correct? A. Investor returns are generally lower than reported fund returns due to transaction costs and management fees. B. Investor returns are generally lower than reported fund returns because fund performances are not persistent and suffer from decreasing return to scale. C. Investor returns are generally lower than reported fund returns because funds generate negative alphas after accounting for risk. D. A and B are correct. E. All of the above are correct

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