Which of the following best characterizes the historical record of active management? Compared to passive management, active manager returns: A) outperform passive management before expenses and equal passive management after expenses. B) equal passive management before expenses and underperform after expenses. C) underperform passive management before expenses and underperform passive management after expenses.
B
B
you guys are too smart ;-)… i got it wrong Your answer: A was incorrect. The correct answer was B) equal passive management before expenses and underperform after expenses. Compared to passive management, active managers have average returns similar to passive management before expenses. After expenses, they underperform passive management on average.
B