What is the average historical performance of actively managed equity funds compared to the Wiltshire 5000...
What is the average historical performance of actively managed equity funds compared to the Wiltshire 5000 index?
Active funds have _____ the index on average, _____ adjusting the index returns for trading costs and management fees.
a) underperformed; even after
b) outperformed; but only when not
c) underperformed; but only when not
d) outperformed; after
Homework Answers
Correct answer : Option d
Active funds have outperformed the index on average after adjusting the index returns for trading costs and management fees.
The index funds do not need high management fees as they do not need manager skill to pick stock. They also avoid transaction fees as the structure of index does not generally change.
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What is the average historical performance of actively managed
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